Global banks, funds call for more capital from derivatives clearinghouses

Timor Invest

Reuters/David Henry/10-24-2019

“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.”

USAGOLD note:  The subject of derivatives does not come up often these days as the financial system has not had a crisis in many years.  It is only when the wolf is at the door that people begin to worry about the state of the derivatives market. Thus, it is more than mildly interesting that this group of prominent financial institutions would raise the alarm now.  Are there vulnerabilities of which these major players might be aware to which the market as a whole is blind?

from https://ift.tt/2BJ5Bnw