Ice members split over new client clearing model
Dealers fear mutualised exposure in 'sponsored principal' model
A client clearing model championed by Ice Clear Europe as a capital-efficient way to provide extra protection for client assets is dividing clearing members. Some claim it could leave them unfairly exposed in the event of a client default.
The approach – dubbed sponsored principal – allows buy-side firms to face the clearing house directly. The client would make initial and variation margin payments to Ice, rather than using a member firm as an intermediary, and would no longer be exposed to the
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