BillHolter.com

Bill’s Commentary:

“If THIS was published in a mainstream publication, you had better PAY ATTENTION! They are already speaking of clearinghouse failures and bail ins, what more do you need to know?”

Regulators told to be ready to handle failed clearing houses

LONDON, April 25 (Reuters) – Regulators must equip themselves with tools such as “bail-in” bonds to deal quickly with a failed clearing house for stocks, bonds or derivatives without having to call on taxpayers for cash, the G20’s risk watchdog said on Thursday.

After the global financial crisis of 2007-09, regulators mandated clearing for a wider range of derivatives, meaning they must pass through a clearer backed by a default fund to ensure completion of trades.