Margin calls jumped threefold as global markets sold off

FCMs claim no client defaults, but episode revives complaints of procyclical margining

Stock-market-turmoil

Clearing brokers had one of their busiest days in years on Monday (August 5) as sharp falls in global markets triggered a massive increase in margin calls.

The head of prime brokerage at a large European bank calls it a “more than three-times normal sort of day,” with total margin calls across bilateral and cleared derivatives tripling.

Clearing executives at four other large banks tell a similar story of massive volumes, widespread margin breaches and repeated calls for additional collateral from

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