Clearing houses in Asia to overhaul creaking margin models

Fears of Nasdaq-style failures spur rethink of margining practices at HKEx, JSCC, SGX

A trading event born in a small town in Norway has reverberated all the way to the financial centres of Singapore, Hong Kong and Tokyo, where clearing house bosses are scrambling to shore up margining practices to prevent outsized losses due to member default.

Asia’s largest central counterparties acknowledge they need to revamp their margin models, as banks channel more of their bookings through regional entities and non-cleared margin requirements start to push trades to CCPs. But September’s