BoE takes subtle leverage snipe at CCP cross-margining
Margin offsets might increase risk, but could also encourage more central clearing
When the Bank of England sounds a warning, market participants tend to take note. But what if that warning’s target is unclear?
At the annual general meeting of the International Swaps and Derivatives Association last month, Sarah Breeden, the bank’s deputy governor responsible for financial stability, urged caution around the risks generated by a margining arrangement that is gathering momentum in
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