Procyclicality may not be a word that’s often used in polite conversation – but it is a bad thing. It is a term used by the Bank of England in its review of clearing houses, published in May, and it refers to the tendency of players in a stressed market to behave in ways that make the stress worse.

However, the Bank's proposal to reduce procyclicality within the safety measures employed by clearing houses has caused concern. It would mean them divulging information about how they manage risk - and potentially exacerbate the problems at times of market stress. As a result of clearing houses' growing importance in mitigating systemic risk, there have been calls for them to be subject to stress tests.