The arguments were put forward by operators such as CME Group, Eurex, LCH.Clearnet and the Depository Trust and Clearing Corporation, which own some of the largest market risk management houses. IOSCO proposed tighter quarterly disclosure for standards on total value of default resources, initial margin rates on individual contracts and the size of “haircut” that would be made to collateral eligible as initial margin. The call was made in conjunction with the Bank for International Settlements.
However the industry has rejected many of IOSCO’s proposals. The European Association of Clearing Houses, which represents 23 institutions, argued that clearing houses should not be required to publish sensitive information such as the positions clearing members and their customers or the collateral held against them.
The Global Association of Central Counterparties, a trade body of 31 central counterparties, warned that IOSCO should be “cognisant of the ability of sophisticated parties to potentially reverse engineer confidential and sensitive information”.
The International Swaps and Derivatives Association, a trade body for market participants, welcomed the details and called for more details and standardised data to help customers perform due diligence.
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