Private banks grapple with initial margin automation

CME
By Hazel Sheffield
06 May 2014

Private banks are facing operational issues posting segregation margin to clearinghouses due to different CCP margin rules. While tier 1 banks have moved towards automated systems, other clearing members, such as private banks, are still heavily reliant on manual processes.

Harry Eddis, partner at Linklaters in London, said that a year ago many clearing members were prepared to implement locally segregated, operationally commingled, or LSOC, accounts, which removed client funds from the default waterfall in a credit event. In August last year, the European Securities and Markets Authority ...

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