LCH.Clearnet SA has implemented a daily intra-day margin process on derivatives markets, which it expects will strengthen 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. Additionally, it 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-IOSCO(1) – and to meet regulatory requirements.
“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,” said Sophie d’Isidoro, who led the project for LCH.Clearnet SA. “In implementing the new intra-day margin calculation, LCH.Clearnet SA has now taken a further step in the optimization and rationalization of its processes, itself bringing further efficiencies to the markets we serve.”