CFTC ‘puzzled’ by CPMI-Iosco plan on margin procyclicality

Prescriptive models could increase systemic risk at CCPs, market participants warn

digital-question-mark

International regulatory standard-setting bodies are creating "solutions in search of a problem" by proposing that clearing houses introduce prescriptive new quantitative metrics to detect possible procyclical effects embedded within their initial margin (IM) models, a senior US supervisor has claimed.

Speaking at a Commodity Futures Trading Commission (CFTC) roundtable discussion in Washington DC yesterday (October 6), John Lawton, deputy director of the agency's division of clearing and risk

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: