Clearing houses 'pose dangers'

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The world's clearing houses need effective regimes to wind them down when they go bust to avoid mayhem on financial markets, the Bank of England's deputy governor Paul Tucker said yesterday.

Clearing houses, such as LCH.Clearnet, Eurex Clearing and ICE have become a focus for regulators since the financial crisis in an attempt to curb risks and improve transparency in markets.

The fear is that as they clear more and more trades, they could become centres of systemic risk in their own right.