LME member default fund contribution jumps 89%
Following record-breaking margin breach in Q1, the CCP plumped up its line of defence
Required members’ contribution to LME Clear’s default fund rose 89% in the second quarter of the year to the highest level ever reported by the central counterparty (CCP).
Aggregate pre-funded contributions to the fund to handle a member collapse totalled $2.08 billion, with members asked to pour an additional $975 million over the three months to end-June.
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Over the same period, the CCP’s own pre-funded contributions rose just 0.3% to $24.5 million.
The CCP’s skin in the game made up
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