BoE mulls tougher rules

LONDON: Financial institutions that settle trillions of dollars of derivative contracts a day may need to hold more capital to stop them requiring a government bailout if they fail, a senior Bank of England (BoE) official said.

David Bailey, a BoE official responsible for financial market infrastructure, said clearing houses - also known as central counterparties (CCPs) - might need to build up bigger capital buffers, as banks are already being required to do.