London
CLEARING houses may need bigger cash buffers to shield taxpayers from bailing them out, global regulators said on Tuesday in proposals aimed at stopping the sector from becoming a new breed of "too big to fail" firms.
Clearing houses such as LCH.Clearnet and Eurex Clearing stand between two sides of a derivatives trade to ensure its completion even if one side goes bust. They handle transactions such as interest rate and credit default swaps worth trillions of dollars.
After opaque derivatives...