CME’s Span 2 margin model generates systems headaches
Market participants welcome smarter margin requirements, but not the computational workload
The introduction of a new margin model at clearing house CME from mid-2023 is delivering on the promise of more appropriate margin calls – but at a cost. Market participants say the systems demands for running the successor to CME’s original Span model – dubbed Span 2 – are proving hard to manage.
“The speed at which the initial margin calculation occurs can be significantly slower than under
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