E.U. close to addressing too-big-to-fail financial clearing house issue
By Francesco Guarascio
November 25, 2019, Reuters
European Union governments are close to agreeing new rules for handling failures of clearing houses, increasing the burden on these firms to limit losses that might rock the financial system, E.U. documents and sources said.
The rules could set a global standard for regulators, which put clearing houses at the center of trading in over-the-counter derivatives and interest rate swaps after the 2008 financial crisis but did not agree on how to wind them down safely.
