NSCC caught $5 billion short in June

Worst-case losses would have wiped out the CCP’s available liquid resources on two separate days in Q2

The National Securities Clearing Corporation (NSCC) was caught short twice to cover its worst-case hypothetical loss in June, which could have resulted in its members having to plug the hole to avoid the clearing house’s complete collapse.

The projected loss of $35.9 billion if its largest clearing member had defaulted exceeded the US central counterparty’s (CCP) available liquid resources by $5.1 billion on one day and by $1.02 billion in a separate instance.

This means the CCP would have

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