Clearing members favour domestic sovereign bonds for IM in Q3
Secured cash at commercial banks and central bank deposits also on the rise as part of collateral diversification
In the third quarter of 2024, central counterparties (CCPs) experienced notable shifts in initial margin (IM) composition as clearing members adjusted their collateral preferences.
On aggregate, across 13 CCPs analysed by Risk Quantum, domestic sovereign bonds saw the biggest increase, rising by $27.9 billion (10.6%), followed by a $21.3 billion rise in secured cash at commercial banks (16.3%) and a $17.5 billion climb in central bank cash (8.7%).
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