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EU official calls for more urgency in clearing talks

Global authorities need to act quickly to ensure rules are in place before next financial crisis, says EC’s head of financial market infrastructure

He said the central debate in Brussels surrounds loss allocation, or what he termed 'spreading the misery'
He said the central debate in Brussels surrounds loss allocation, or what he termed 'spreading the misery'

A senior European Commission official has said that global authorities need to focus on finalising their regulatory reform efforts to ensure that the collapse of a clearing house does not cause the next financial crisis.

Speaking at the Financial Industry Association Europe's International Derivatives Expo in London on Wednesday morning, Patrick Pearson, the head of the financial market infrastructure unit at the European Commission, said that key areas of how clearing houses react in a default remain undecided.

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