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Traders say they are not "too big to fail", clearing houses may be 

April 3, 2014
Dmitry Zhdannikov, Silvia Antonioli, Reuters

The world's regulators should stop worrying whether trading houses are "too big to fail" and focus instead on ensuring that new rules are not forcing far too many deals through clearing houses, major commodity traders said on Tuesday.

Some policymakers question whether the largest commodities firms, which handle almost a trillion dollars a year in energy,metals and grains deals, could pose a risk to the wider economy.

They draw comparisons with the huge banks that, following the 2008 collapse of Lehman Brothers, had to be rescued by governments as their failure would have caused economic chaos.

But traders pointed to regulations, aimed at increasing the transparency of complex financial deals, that have forced many trades onto exchanges and through clearing houses.

Some fear these could be stoking up future problems.

Read more: Reurters

 
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