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Clearing houses in Europe should be regulated by central banks to guard against the risk of a catastrophic failure by one of them, the London Stock Exchange's chief executive said.
Xavier Rolet, aformer Lehman Brothers and Goldman Sachs banker, said...
Competition to clear over-the-counter derivatives will likely be the main theme of 2010, as providers actually fire up operations.
Divisions between global regulators started to emerge on Wednesday over how to reform thevast over-the-counter derivatives markets as the UK's financial watchdog saidit opposed forcing "standardised" OTC contracts into clearing houses.
The push for clearing credit derivatives betweendealers and their customers accelerated on Tuesday, as the CME Group's platformbegan operating, one day after rival, ICE Trustrolled out its service for over-the-counter derivatives.
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