OTC Derivatives Clearing Summit: Joint solution needed on intraday margin calls, says panel

Dealers, clients and clearing houses need to work together to resolve problems caused by intraday margin calls, say panellists

Buy-side firms will struggle to meet central counterparty (CCP) intraday margin calls once they move to clearing, and joint action is needed by the buy side, clearing members and clearing houses to resolve the problem, according to speakers at Risk's over-the-counter derivatives clearing summit in New York yesterday.

Clearing houses can make several margin calls each day to cover the risk on cleared trades posed by intraday market moves – but this will put a huge strain on buy-side firms, which