Ex-BoE deputy governor fears ‘utter mayhem’ from clearing house reform
By Laura Noonan and Philip Stafford
August 2, 2020, Financial Times
Financial regulators risk “utter mayhem” in markets if they do not radically toughen their plans to reform clearing houses, former deputy Bank of England governor Paul Tucker has warned.
Clearing houses, run by companies such as LCH, CME Group and Intercontinental Exchange, have been in the crosshairs of global regulators since the 2008 financial crisis. Their vital role, standing between parties trading trillions of dollars a day and dealing with defaults, has raised concern that they are “too important to fail”.
