The push by lawmakers for increased centralised clearing of over-the-counter derivatives ranging from interest rate swaps to credit default swaps could create new risks in the financial system, a Federal Reserve official warned on Tuesday.

Patrick Parkinson, senior adviser to the Federal Reserve Board, said proposed legislation that would require all “standardised derivatives” to be centrally cleared could create pressure for “central clearing counterparties to clear a wider range of derivatives than would be safe to clear”.