
SwapClear changes expulsion rules
Clearer will no longer boot out member firms when they drop below BBB threshold. Downgrades planned by Moody's Investors Service could have left Morgan Stanley a notch away from expulsion

LCH.Clearnet’s SwapClear service has scrapped rules that base margin multipliers – and the mechanism by which clearing members are kicked out of the clearing house – on external credit ratings. With banks facing sweeping downgrades, the overhaul removes a potentially explosive source of pro-cyclicality from the system.
“We always found it a slightly bizarre methodology. It was initially designed
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