Volatile Q2 Reshapes Margin Composition at Top CCPs
According to Risk.net, the second quarter saw a significant increase in initial margin (IM) breaches and calls at central counterparties (CCPs) worldwide, resulting in clearing members posting more collateral.
This trend manifested differently at various CCPs. For instance, at CME Clearing's futures and options unit, margin in the form of gold grew over the past 12 months, with clearing members posting $6.
The JSCC introduced a new cash collateral method, while CME witnessed a record high in gold.
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Author's summary: Volatile Q2 affects CCPs' margin composition.