Global Regulators Plan Tough Trading Rules

Global regulators have proposed strict trading risk rules.

Global regulators have proposed strict trading risk rules, Reuters reports. International Organization of Securities Commissions (IOSCO) authored the draft rules with the Committee on Payment and Settlement Systems, which comprises central bankers from across the world. The rules will require clearing houses to increase their default funds by asking for bigger margins and collateral from banks and brokers, whose transactions they process on behalf of investors. The rules will be applicable to clearing houses, including DTCC, Eurex Clearing, LCH.Clearnet and Cassa, as well as settlement houses, such as Euroclear and Clearstream.

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