CME was ill-prepared for negative oil prices, FCMs say
Bourse draws criticism over timing of options model change; delay in sending key margin file
CME Group is taking flak over its decision to change the model it uses to price oil options during a period of unprecedented volatility in crude markets.
Four of CME’s largest clearing members have criticised the timing of the model switch, with some suggesting that a delay in receiving accompanying margin instructions from the central counterparty exposed them to undue risk.
“Why were they not
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