LCH to revise margining after Brexit backlash
Excess intra-day margin will offset other collateral calls from November 3
LCH is to alter its margin processes after banks complained about the size of the intra-day calls they faced in the wake of the UK's Brexit vote. As Risk.net revealed yesterday, some members had to post up to $1 billion in margin to the clearing house on June 24, and LCH now plans to let banks subtract some of this intra-day margin from the following day's calls.
Currently, futures commission merchants (FCMs) can end up posting excess cash to LCH in a series of three intra-day margin calls
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