CCP chiefs warn on clearing provision capacity

Ice and LCH question whether direct buy-side clearing models can alleviate capital crunch

Photo of pressure gauge

Derivatives markets are facing a dangerous lack of capacity when it comes to client clearing provision, senior executives at the world’s largest central counterparties (CCPs) have warned – but operators are split on whether clearing models that allow buy-side firms to face CCPs directly are part of the solution.

Speaking at the International Futures Industry Conference in Boca Raton, Florida today (March 16), representatives from both Ice and LCH warned that the decline in the number of futures