Regulators should set ‘guidelines’ for CCP margins – Kemp
Citi’s former clearing head says CCPs are still competing on margin
Click here to read Risk.net’s full interview with Jerome Kemp.
One of the clearing industry’s most influential voices is calling on regulators to pay closer attention to margin levels at central counterparties (CCPs), which he suggests were too low going into the Covid-19 crisis and rose too quickly when margins became stressed.
“I think regulators could think about setting – I don’t want to call them standards – but setting guidelines relative to the overall establishment of margin models,”
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