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
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