Regulation

EU proposes recovery and resolution rules for clearers

Central counterparties have become central to the stability of derivatives markets since the financial crisis

Monday 28 November 2016 at 16:59

EU proposes recovery and resolution rules for clearers
Photo: iStockPhoto

The European Union's executive body has put forward proposals designed to make sure that clearing houses – which have become central to the stability of derivatives markets – will not require taxpayer support in a crisis.

The European Commission said in a November 28 statement that its proposals will give authorities and clearing houses the means to act in a crisis.