Bank of England calls for greater transparency on CCP margin modelling
CCPs should have complete transparency on risk to prevent margin-related failures
Central counterparties (CCPs) should provide complete transparency over the modelling of their margin requirements and how they cross-margin between different product lines, according to Edwin Schooling Latter, head of payments and infrastructure at the Bank of England.
A large number of CCPs globally are aiming to take advantage of regulatory mandates that will require standardised over-the-counter derivatives to be cleared at a clearing house, with many operating as commercial enterprises. In
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