Banks seek to pry open CCP black boxes

Clarity on model inputs may have averted Brexit chaos, FCMs claim

Crowbar computer

The market moves – and attendant margin calls – that followed the UK’s shock vote to leave the EU last June will live long in the memory for banks and buy-side firms in the derivatives markets. Clearing members claim a lack of transparency from clearing houses contributed to the funding stresses that followed, with banks left scrambling to meet cumulative intraday margin calls of up to $40 billion – which often had to be paid within an hour. 

Since 2015, clearing houses have voluntarily

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: