Loan danger: CFTC sees systemic risk in margin financing

Combined with EU net CCP margin rules, bank-issued margin loans could pose systemic risk


If you want to gamble at the casino, you first have to buy your chips with real cash. In the world of derivatives clearing, initial margin (IM) is the cash with which you buy your chips, and the central counterparty (CCP) is supposed to play the role of the casino safe.

But what if the gambler busts out, and when the casino manager opens the safe they find it empty? That's a very rough approximation of the increasing anxiety among US regulators towards a practice called margin financing.

In a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Modernising compliance functions with regtech

Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here