LCH under scrutiny after outsized Brexit margin calls

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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

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