As business mix shifts, Eurex bulks up its default fund
Clearing house will raise charge to 9% from 7% as stress tests signal need for a fatter fund
Eurex Clearing will raise the mandatory contributions to its default fund to 9% of an average margin metric as changes in its business mix have made its cash hoard look thin in stress tests.
The increase from the current 7% contribution goes into effect on Monday, February 3.
Eurex says the need for a huskier default fund arose from a tilt in its business. By the third quarter of last year, over-the-counter business had come to account for 26% of initial margin (IM) – up from a mere 7% in the
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