EU governments back rules to raise burden on clearing houses in case of failure

European Union governments agreed on Wednesday new rules for handling failures of clearing houses, an EU statement said, in a move that would increase the burden on these firms to limit losses that might rock the financial system. The deal concerns 16 EU-based clearing houses which clear a significant proportion of the 640 trillion euros ($705 trillion)of derivatives traded through central counterparts, the EU said.

The rules, which need to be approved by the European Parliament, "will help to address interconnectedness and contagion risks, while encouraging less risky behaviour by clearing houses and other market participants," Finland's Finance Minister Mika Lintila said. ($1 = 0.9073 euros)

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