Margin breaches skyrocket at JSCC amid market volatility
August turmoil led to record initial margin shortfalls at six clearing divisions
Market volatility in August 2024 triggered a wave of initial margin breaches at the Japan Securities Clearing Corporation, with six of the central counterparty’s (CCP) clearing services reporting their largest backtesting deficiencies on record.
During the third quarter of last year, the index futures and options (F&O) clearing unit reported a peak breach of ¥246.7 billion ($1.6 billion) – more than 10 times the previous highest deficiency of ¥22.8 billion recorded in Q3 2016.
Similarly, the
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