Regulators’ margin model rules too lax – BlackRock exec

Risk USA: EU anti-procyclicality rules like “putting a curtain over a draughty window”

A senior executive at the world’s largest fund manager has criticised the regulations that govern clearing house margin models, arguing the mechanisms they set out to stop margins rising too quickly during volatile periods are inadequate.

Eileen Kiely, a managing director specialising in clearing house risk at BlackRock, argued holes in anti-procyclicality rules meant central counterparties’ (CCPs) margins were not “sufficiently calibrated” to address the volatility that tore through global