SGX rules out VM haircutting in recovery planning

Hitting variation margin "inappropriate" in Singapore context, but some bankers support its use

Agnes Koh SGX
Agnes Koh: "We don't intend – at least at this stage… to put VM haircutting as a recovery tool'

Singapore Exchange (SGX) has no plans to introduce variation margin gains haircutting (VMGH) into its recovery and resolution plans, according to Agnes Koh, the exchange's chief risk officer.

"In a Singapore context, we don't intend – at least at this stage in our recovery and resolution plan – to put variation margin haircutting as a recovery tool. We think this would conflict with what the motivation is for a CCP's existence. If it has to be used, perhaps it is something the resolution

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