RepoClear’s default fund halves in Q1
Elevated initial margin allows LCH service to scale back second line of defence to lowest point on record
LCH’s UK-registered RepoClear service reduced the size of its default fund to £506 million ($626 million) in the first quarter of the year, a 51% drop from the £1.04 billion recorded in Q4 2022.
LCH said the halving was a result of the clearing house receiving higher initial margin from its members, which meant less ballast was needed in the form of the default fund.
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