ECC default fund changes set to cut clearing member contributions
Stress loss over margin designed to ease procyclical behaviour seen during 2022 energy shock
Clearing members are cheered by long-awaited changes to the methodology for calculating default fund contributions at European Commodity Clearing. Among four members who have spoken to Risk.net, there is a hope the new approach will reduce the procyclicality of the requirements, while some believe it will result in a net reduction in contributions.
“We welcome the new methodology, no doubt,” says Franck Borgel, global head of commodities agency clearing at ECC member Societe Generale. “ECC does
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