Clearing house warning to Irish bond traders

Discussion in 'Wall St. News' started by ASusilovic, Nov 4, 2010.

  1. Fears over the health of the eurozone bond market intensified after one of Europe’s biggest clearing houses warned investors they could be compelled to stump up substantially more money to trade in Ireland’s debt.

    LCH.Clearnet told members they might be required to deposit more cash to trade in Irish sovereign bonds, a move that is being widely interpreted as a signal that the organisation will act next week.

    Such a curb would be a blow to the Irish debt market and comes amid growing concerns over the fragility of the euro_zone’s peripheral economies.

    Ireland and Spain were on Thursday removed from a list of countries in which Russia’s $130.9bn sovereign wealth funds is permitted to invest, according to the Russian finance ministry’s website. Norway’s $520bn fund said the past few weeks had seen Spanish debt grow significantly less attractive.