LCH margin changes to ease funding stresses, say FCMs

Clearers welcome move to free up excess cash margin and remedy ‘double-dipping’ complaints

LCH.Clearnet building London
LCH's margin changes could've cut FCMs' Brexit margin bill by half, according to one estimate

Dealers have welcomed a significant change to SwapClear’s margin policy that will see the central counterparty (CCP) allow futures commission merchants to use excess cash collateral they hold to meet variation margin calls, in a bid to alleviate the kind of intraday funding stresses members say they were exposed to in the wake of the UK’s Brexit vote in 2016.

The changes, which were implemented at the end of November, are a direct response to banks’ criticisms that LCH’s margin policies are

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: