LCH under scrutiny after outsized Brexit margin calls

Intra-day calls criticised by banks; FIA working group pushing for change

CCPs estimated to have called for cumulative $30–40bn in margin

Margin practices at LCH have come under fire after banks faced bumper calls on the day of the UK's Brexit result. Some members of LCH's interest rate swap clearing service are said to have received calls for as much as $1 billion – an obligation that had to be met within an hour.

Banks are aggrieved because the calls cover their clients' losing positions – not the net risk the bank sends to the clearing house – and also because the posted margin is not returned until late the following business