BoE’s second SITG proposal could lead to $333m additional CCP capital
Plan would expand own-capital tranches deployed alongside member contributions at LCH, Ice and LME
Major UK clearing houses could be required to commit almost $333 million of additional capital to their default waterfalls if the Bank of England’s proposal to introduce a second tranche of skin in the game (SSITG) is implemented, according to a Risk Quantum analysis.
Under the proposed framework, UK central counterparties (CCPs) would be required to add a second layer of prefunded own resources
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