EU net margin rules are riskier than US regime, warns CFTC
Commission’s Bandman raises margin financing as emerging systemic risk to CCPs
The European Union's net margin clearing regime provides fewer systemic safeguards during the default of a buy-side client at a central counterparty (CCP) compared with a gross margining approach, claims a leading US regulator – provoking an emphatic rebuttal from European clearing banks.
"For futures trading in the US, we require gross margining where the clearing house requires the clearing members to pass on customer collateral so the funds are actually available to the CCP. For futures
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