Margin calls could increase regulatory scrutiny on CCPs

Collateral pressure margin squeeze leverage ratio cash adobe stock AS 230x150
By Ross Lancaster
22 Jul 2020

Central counterparty clearing houses (CCPs) could face increased attention and greater regulation after coming through the Covid-19 crisis in good shape, Fitch Ratings analysts said this week.

Clearing houses can largely boast of having had a good crisis after the extreme market volatility caused by Covid-19’s spread and big drops in oil prices this year. Clearing member defaults have been limited and CCPs have not had to tap their default funds.

That has largely vindicated ...

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