Futures margin breaches on track to match 2020

At least 500 seen so far this year, says JP Morgan exec – in some cases leading to 200% margin increases

Margin-breaches-on-the-rise
Risk.net montage

With seven weeks until year-end, margin breaches on exchange-traded derivatives are on track to match the number seen in 2020, according to a JP Morgan executive.

The US bank defines a margin breach as when a two-day market move in a contract exceeds the level of margin held against the position. The bank saw 590 breaches during 2020, the year of the Covid pandemic’s outbreak. So far this year, JP Morgan has seen 500 breaches, with 70% of the contracts it monitors experiencing at least one.

“I

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here