Central counterparties (CCPs) around the world are filing or are said to be preparing to raise their capital requirements, whether as part of standing capital or margin. This is the cost of robust and near-failsafe CCPs, enforced by the Basel/IOSCO Principles for Financial Market Infrastructures and regional regulations intended to funnel business to CCPs. More security in periods of market volatility means bigger cash buffers, which can only come from clients.
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