Brussels is proposing to give regulators more power to manage crises at clearing houses — for products including stocks, bonds and derivatives — amid fears such institutions are now “too big to fail”.
The European Commission’s plans, unveiled on Monday, would in case of difficulty allow European and national authorities to safely wind down clearing houses, which have become increasingly important for the economy, or alternatively chart a way for their recovery.
Platforms such as the London Stock Exchange Group’s and Deutsche Börse’s Eurex Clearing underpin the financial markets by acting as counterparties to every buyer or seller.
Their role has been expanded since the 2008 financial crisis as regulators have promoted the use of clearing houses for a wider range of securities, including large parts of the derivatives market.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI