Clearing houses are posing regulators a new headache, the very institutions at the forefront of efforts to reform the financial system since the crisis . Centralising the trading of derivatives into clearing houses was aimed at reducing risks to the financial system from the failure of an individual bank, but has magnified the importance of clearing houses. That, for some, has made clearing houses the new “too-big-to-fail” institutions of the post-crisis financial system. Earlier this month, the Basel-based Financial Stability Board, an umbrella group of central bankers and regulators, became the latest regulator to lay out a blueprint for how to prevent taxpayer bailouts of clearing houses such as London-based LCH, which is controlled by the LSE.

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