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Risk concentration at central counterparties sparks buyside fears over what happens if a clearing house goes pop

A fierce debate is building in the market infrastructure industry as policymakers contemplate plans to prevent clearing houses causing the next credit crisis.

It comes amid fears that central clearing counterparties - which guarantee a trade if a buyer or seller of a financial instrument defaults - are being regulated into a position where, like the universal banks in 2008, the sheer amount of risk they hold makes them a potential failure point for the financial system.

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