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.

!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t]