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Clearing house rule changes rile brokers

FIA letters call on ICE Clear Europe and LCH to revise rules on how they plan to allocate investment losses

Banks and brokers are becoming increasingly concerned at Bank of England-led changes to UK clearing rules that could see them bear the brunt of losses from clearing house investments.

The concerns, raised by derivatives trade body the Futures Industry Association, specifically relate to recent rule changes by UK-based clearing houses LCH.Clearnet and ICE Clear Europe and come as new regulations force market participants to process a wider range of derivatives trades through clearing houses.

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