Focus grows on clearinghouses amid market turmoil

摘要

Regulators forced trillions of dollars worth of derivatives through central clearing after the global financial crisis of 2008 to help avoid repeats of that meltdown. Now, the coronavirus-inspired market slump is providing the greatest test yet of these crucial financial institutions. Central counterparties, or clearing houses, act as middlemen in derivatives trades to prevent losses cascading through the financial system if one of the parties involved in trades defaults. But concentrating such enormous amounts of risk in a handful of CCPs has also led many to question whether these