JP Morgan exec questions bond collateral double standard
Isda AGM: CME applies 20% margin haircut for corporate debt while LCR hits banks with 50% cut
The head of JP Morgan's clearing business has questioned an apparent double standard that means banks have to apply a haircut of up to 50% when holding corporate bonds for liquidity purposes, while CME Group is able to apply a 20% haircut to bonds posted as margin.
Emily Portney, global head of clearing and collateral management at JP Morgan Securities, argued both banks and clearing houses are systemically important, and should adhere to the same standards on collateral eligibility and
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