EU council dials back on margin haircuts for CCP resolution

Lawmakers close avenues for regulators to dip into non-defaulting members’ initial margin

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Council’s call: two amendments, but no outright ban

Draft proposals from the Council of the European Union would curb the ability of resolution authorities to dip into the initial margin accounts of central counterparty (CCP) members during a crisis. However, the absence of an outright ban in the text could allow regulators to find ways of introducing the tool through creative interpretations.

“Initial margin haircutting remains an important issue for us, so it [the council’s text] is a good outcome,” says Bill Stenning, managing director of

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