Clearing houses hoping for a rich pickings from stricter derivatives rules face spot checks to make sure they are investing enough money in risk management, the Bank of England said. World leaders have agreed that the $650 trillion markets for credit default swaps, interest rate swaps and other derivatives traded among banks should be centrally cleared from next year to improve transparency. Central clearing ensures transactions are backed by a default fund in case one side of a deal goes bust. The prospect of large swathes of derivatives having to be cleared has prompted clearing companies such as NYSE Euronext, CME and others to bulk up. The BoE, outlining how it will supervise clearing houses from April, said on Tuesday its key concern will be to ensure financial stability was maintained in the public interest. "If financial market infrastructures are operated only in the private interests of their managers, owners, or even their members, they may underinvest in the mitigation
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