Hard concentration: clearing members want clarity from CCPs
FCMs complain they struggle to pass opaque margin calculations through to end-clients
It makes sense to charge extra margin for clients that have outsized derivatives positions in a particular instrument relative to the depth of the market. But how clearing houses are calculating this concentration margin makes a lot less sense to their members at the moment.
“It’s not very transparent what the composition of that concentration charge is, so how do you attribute that concentration
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