Íø±¬³Ô¹Ï

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
≔ Menu
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. LCH EquityClear operationalises VaR margin model for cash equities
Industry news

LCH EquityClear operationalises VaR margin model for cash equities


14 July 2022 France
Reporter: Holly Shelton

Generic business image for news article
Image: ipopba/stock.adobe.com
LCH EquityClear SA has announced it has applied the Value at Risk (VaR) methodology across all unsettled cash equity positions on EquityClear over 12 regulated markets and margin trading facilities cleared by the service.

The VaR-based framework — replacing the previous risk methodology that was based on SPAN — is part of EquityClear’s continued commitment to provide clearing members with an increased margin efficiency, an enhanced set of reports, trading venue access expansion and growing local central securities depository connections.

Speaking on the announcement, Christine Huant, head of EquityClear and CommodityClear first line risk, says: “The launch of VaR-based risk framework on cash equities for LCH EquityClear is an important step forward.

“It significantly improves the safety of the market with a well-balanced model between anti-procyclicality and level of coverage. This new risk framework also brings more flexibility, enriching our offering for clearing members.â€
← Previous industry article

deltaconX AG partners with Finnova AG Bankware
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Íø±¬³Ô¹Ï Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →