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Capital rules "exacerbating" clearing house risks - CFTC commissioner

WASHINGTON, Oct 17 (Reuters) - Bank capital rules are helping to concentrate more and more risk inside the clearing system, increasing systemic risk, the Commodity Futures Trading Commission's (CFTC) Brian Quintenz said on Tuesday.

Speaking at a conference hosted by the Federal Reserve Bank of Chicago, the Republican Commissioner warned that bank capital rules have had the perverse effect of making it too expensive for banks to provide clearing services, leading many to pull out of the business.

This has resulted in more and more derivatives trades being concentrated among fewer clearing house member firms.

(Reporting by Michelle Price; Editing by Chizu Nomiyama)