Richard Heckinger retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago, having started his career in 1973 at the Chicago Board Options Exchange. He held executive positions at exchanges, clearing houses and depositories in the USA, Canada, UK and Hong Kong. He served on numerous international committees and working groups. Presently, he is a Contributing Editor, Central Banking Journal, Associate Editor, Journal of Financial Market Infrastructure and a Member, Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. in Economics, London School of Economics, a B.A. in Mathematics from the Illinois State University, completed the Advanced Management Course at the University of Chicago and served in the U.S. Army (Infantry).
In this paper, the authors address one aspect of CCP risk management: initial margining practices. The paper provides a historical review of margining at selected CCPs as well as an overview of their current margin policies.