Banks demand greater scrutiny of CCP margin add-ons
Nasdaq Clearing blow-up prompts questions over CCPs’ methods of applying top-ups to concentrated positions
More should be done to ensure margin concentration add-ons are calculated appropriately by central counterparties (CCPs) – perhaps with the involvement of regulators – say market participants, following hefty losses at Nasdaq Clearing on a position that was not deemed concentrated enough to warrant a margin top-up.
In September, Nasdaq Clearing members were left mopping up losses of €107 million ($122.0 million) when spread trades put on by Norwegian power market trader Einar Aas blew up
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