Creditors Of Failed Clearinghouses Should Feel Pinch

Law360, New York (July 31, 2012, 2:44 PM EDT) -- Creditors of key portions of the financial market infrastructure, like derivative clearinghouses, should be prepared to take losses in the event that the institution falters rather than taking out all the money they are owed, global financial regulators said Tuesday.

The Committee on Payment and Settlement Systems and the International Organization of Securities Commissions said that it was vital for derivative clearinghouses and other central counterparties to financial transactions to have living wills, much like banks are now required to have in the United States....
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