Margin models converge as CCPs battle for dealer support


The children's story of the three little pigs extols the virtues of hard work and a healthy aversion to risk: two pigs build rickety homes from straw and wood, and pay the price as their houses are blown in by a big, bad wolf. The third pig builds his house using bricks, which stands firm despite the wolf’s huffing and puffing.

It’s a fable to which derivatives dealers can probably relate: huge volumes of their capital and assets will be tied up at central counterparties (CCPs) after the bulk of

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