LCH’s fixed income and IRS units hit by record margin breaches

Peak breaches in Q3 were £924 million and £698 million in size, respectively

Market volatility in the third quarter triggered a flurry of initial margin breaches across LCH’s fixed income and interest rate swaps clearing divisions.

At RepoClear, the clearing service for fixed income contracts, the number of backtesting deficiencies stood at 128, up from two reported in Q2 2022.

The peak breach was £924 million ($1.13 billion) in size, the biggest for the clearing service since public disclosures began in 2015. The average breach size was £41 million, the fourth-highest

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