FCMs warn CCPs not to compete on margin
Equity moves in February exceeded margin posted against some cleared products, says JPM’s Rustad
Clearing heads at Citi and JP Morgan have called on central counterparties (CCPs) to review their margin methodologies in light of rising volatility in financial markets.
“One of the things that we always talk about is making sure CCPs compete on price, product and service – and not necessarily on margin,” said Nick Rustad, head of global clearing at JP Morgan. “Some of the stuff we saw in February with the equity market volatility really highlighted that. Some CCPs had daily moves that were
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