LCH.Clearnet SA is pleased to announce the successful implementation of a daily intra-day margin process on derivatives markets. This new process represents a major step forward in the strengthening of its safety and guarantee mechanism.
The Risk Department will be able to measure and monitor the risk profiles of its members during the day by using updated intra-day positions and prices and will be able to take action when necessary in the form of an intra-day margin call.
This new initiative enables LCH.Clearnet SA to implement industry standards of best practice for intra-day margin calls and monitoring policies - CPSS-IOSCO1 – and to meet regulatory requirements.
Commenting on the initiative, Sophie d’Isidoro, who led the project for LCH.Clearnet SA, said; “We are very grateful to our members for the work they have undertaken in helping us to deliver this improvement to our risk management capability. In implementing the new intra-day margin calculation, LCH.Clearnet SA has now taken a further step in the optimisation and rationalisation of its processes, itself bringing further efficiencies to the markets we serve.”
1The Committee on Payment and Settlement Systems (CPSS) of the central banks of the Group of Ten countries, and the Technical Committee of the International Organization of Securities Commission (IOSCO) issued 15 headline recommendations.
