Loading ...NEW YORK (Reuters) – Four global banks and five big fund managers called on international regulators on Thursday to require for-profit derivatives clearinghouses to put up more of their own capital to protect against cascading losses that could rock the world financial system.
Members of the group, including Citigroup Inc, (C.N) JPMorgan Chase & Co (JPM.N) and BlackRock Inc (BLK.N), published their views to try to shift in their favor prolonged policy debates over how clearinghouses should be fortified.
Regulators put clearinghouses at the center of trading in over-the-counter credit derivatives and interest rate swaps after the 2008 financial crisis. But the regulators have yet to agree on detailed protocols for shoring up, or safely winding down, clearinghouses wounded by customer defaults.