Even more LCH margin hikes

LCH initial margin calculation swaps

Bloomberg have integrated the Initial Margin calculations from SwapClear into their trading platform. What this provides is:

  • The ability to always know your current IM
  • The ability to predict IM in varying market conditions
  • The ability to calculate capital requirements
  • All integrated within a trading environment

This I believe is thefirst time a CCP aligned in a horizontal sense has embedded their margin model into an upstream execution platform - and puts BBG quite a league ahead of other SEF platforms. An alternative to this is to hold your investment portfolio in your own trading system and have an IM calculator synchronised alongside to provide the same calculations. LCH and BBG will need to take care to manage change control - before only LCH had to take care to update their margin model within their own systems - now BBG must stay in-line too.

LCH.Clearnet's margin calculator is integrated with Bloomberg's multi-asset class analytics and trading platforms, making it easy to anticipate, and therefore manage, how large price movements and changing market conditions will impact capital needs. Bloomberg Professional service subscribers can access the tool to simulate their portfolios’ exposure to risk factors and perform instantaneous, consistent margin approximations, prior to clearing, for no additional cost. "As a result of mandatory clearing requirements, the need for on-demand margin analysis is critical and accessing a clearinghouse's margin calculations on the Bloomberg Professional service helps me to manage my investment decisions and operations, ” said Matthew Lynes, Portfolio Manager at Aberdeen Asset Management. “Bloomberg continues to provide the solutions the industry needs to meet regulatory requirements and make better informed investment decisions on behalf of our investors.”

FindingKing INRI Crucifix with St. Benedict Medal Gold Plated 3"
Jewelry (FindingKing)
  • This is a new gold plated Inri Crucifix with St. Benedict medal
  • St. Benedict is the patron saint of farmers, civil engineers, students and all members of religious communities
  • On the arms of the cross are the initial letters of a rhythmic Latin prayer: Crux sacra sit mihi lux! Nunquam draco sit mihi dux! (May the holy cross be my light!...
  • Above the cross is the word pax (peace), that has been a Benedictine motto for centuries. Around the margin of the back of the medal, the letters V R S N S M V...
  • Makes a great gift for yourself or a loved one

Self-Regulatory Organizations; ICE Clear Europe Limited; Order Granting ..  — Insurance News Net
ICE Clear Europe states that the changes to the Risk Policy amend the calculation of CDS initial margin requirements to comply with margin requirements under EMIR Article 41 and Article 24 of the implementing Regulatory Technical Standards. /5/ ICE ..

Lumen Mundi Pyx with St. Benedict Medal Gold & Silver Plated Religious Icon Hospital Church
Home (Lumen Mundi)
  • This is a new gold and silver plated Pyx with St. Benedict Medal
  • St. Benedict is the patron saint of farmers, civil engineers, students and all members of religious communities
  • On the arms of the cross are the initial letters of a rhythmic Latin prayer: Crux sacra sit mihi lux! Nunquam draco sit mihi dux! (May the holy cross be my light!...
  • Above the cross is the word pax (peace), that has been a Benedictine motto for centuries. Around the margin of the back of the medal, the letters V R S N S M V...
  • Perfect for holy communion
FindingKing St. Benedict Medal Gold Plated Enamel Red & Brown 1 1/4"
Art and Craft Supply (FindingKing)
  • This is a new gold plated red and brown enamel St. Benedict medals
  • St. Benedict is the patron saint of farmers, civil engineers, students and all members of religious communities
  • On the arms of the cross are the initial letters of a rhythmic Latin prayer: Crux sacra sit mihi lux! Nunquam draco sit mihi dux! (May the holy cross be my light!...
  • Above the cross is the word pax (peace), that has been a Benedictine motto for centuries. Around the margin of the back of the medal, the letters V R S N S M V...
  • Makes a great gift for yourself or a loved one
FindingKing 6 St. Benedict Revolving Key Rings Gold Plated 1 1/4"
Art and Craft Supply (FindingKing)
  • This is a new set of 6 gold plated St. Benedict revolving key rings
  • St. Benedict is the patron saint of farmers, civil engineers, students and all members of religious communities
  • On the arms of the cross are the initial letters of a rhythmic Latin prayer: Crux sacra sit mihi lux! Nunquam draco sit mihi dux! (May the holy cross be my light!...
  • Above the cross is the word pax (peace), that has been a Benedictine motto for centuries. Around the margin of the back of the medal, the letters V R S N S M V...
  • Perfect for any kind of keys
FindingKing Pyx with St. Benedict Medal Gold & Silver Plated
Art and Craft Supply (FindingKing)
  • This is a new gold and silver plated Pyx with St. Benedict Medal
  • St. Benedict is the patron saint of farmers, civil engineers, students and all members of religious communities
  • On the arms of the cross are the initial letters of a rhythmic Latin prayer: Crux sacra sit mihi lux! Nunquam draco sit mihi dux! (May the holy cross be my light!...
  • Above the cross is the word pax (peace), that has been a Benedictine motto for centuries. Around the margin of the back of the medal, the letters V R S N S M V...
  • Perfect for holy communion

Popular Q&A

avatar
How is the Initial margin (IM) on open position calculated?

The same margin % applicable for orders will be levied at position level also. Position level margin is arrived at by applying the IM% on the value of net open position.

avatar
Initial Margin Requirement & Corn Quote explanation?

If we take the example, of the Corn Futures Contract, March 12, full sized, 5000 Bushels.
Tick Size is 1/4 cents/bushel
How should I calculate my Initial Margin and Maintenance Margin
Last price quoted price is :619'4 (could u explain the price quote also, what is the '4 after the 619)
I ask this question, because I want to pass the series 3 exam of the NFA
kindest regards

You have to just look up the initial and maintenance margins at the exchange website. You can't calculate it from anything. Like there is no formula that says that initial margin is 25% of the notional value of the contract. Here is a link
Initial is 2363 and maintenance is 1750
The tick size of corn is 1/4 cent but it is quoted in 1/8's so 619'4 means 619 4/8 = $6.195/bushel

Related Posts