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Articles tagged by margin adequacy

FIA Updates CCP Position Paper Following Nordic Default The Futures Industry Association (FIA) has released updated recommendations to improve clearinghouse risk management following recent market developments. The developments in question are the placing of a member of Nasdaq Clearing’s Nordic market in default in September. The losses were sufficiently large to exceed the margin provided by the defaulter and the CCP’s own skin in the game and required the use of the commodities default fund. This was the first use of a default fund by a major CCP since a default on KRX, the South Korean exchange, in 2013.