Swaps Clearinghouses Set for Systemic Designation
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A panel of U.S. regulators plans to designate some swaps clearinghouses as systemically important as soon as tomorrow, putting them under heightened supervision, according to two people familiar with the officials’ work.
Clearinghouses are required to process most swaps in the $708 trillion over-the-counter derivatives market under provisions of the 2010 Dodd-Frank Act. The designation will be the Financial Stability Oversight Council’s first delineation of which companies aside from banks would threaten the financial system in the event of a failure. The panel is next scheduled to meet tomorrow.