Dismal's Smacks

🌙 ☀️

Sign in Subscribe

📝Commentable📝

FICC is proposing a rule to collect MORE margin via a Portfolio Differential Charge that would be calculated twice a day. FICC's impact study shows that even with the PD Charge, 30 Members would still be un-margined during periods.

This charge needs to be MORE! Wut mean?: * FICC is introducing a new component, the PD Charge, to improve how it calculates the necessary deposit for the GSD Clearing Fund. * This change aims to reduce risks from the variations in a Member’s Margin Portfolio(s) that can happen between

"The proposed Debt Issuance would provide DTC with an additional source of default liquidity, which would allow it to diversify its sources of default liquidity"

"The proposed Debt Issuance would provide DTC with an additional source of default liquidity, which would allow it to diversify its sources of default liquidity"

"The proposed Debt Issuance would provide DTC with an additional source of default liquidity, which would allow it to diversify its sources of default liquidity and mitigate risks to DTC that it is unable to secure default liquidity resources in an amount necessary to meet its liquidity needs."

DTCC Notice

NSCC/OCC propose changes to keep NSCC netting for OCC.

Without NSCC, there's no netting for OCC & in January 2022, the largest gross broker-to-broker settlement amount in the case of a larger Clearing Member default would have resulted in liquidity needs of approximately $384,635,833,942 from OCC. Wut mean?: * The Existing Accord permits NSCC to

Order Approving Proposed Rule Change Concerning Collateral Haircuts and Standards for Clearing Banks and Letters of Credit.

Options Clearing Corporation Alert! Order Approving Proposed Rule Change Concerning Collateral Haircuts and Standards for Clearing Banks and Letters of Credit.

Wut Mean?: * The OCC acts as a middleman for financial transactions, buying from sellers and selling to buyers, in the U.S. options and certain futures markets. * This role exposes the OCC to risks like credit risk, where it has to fulfill contracts even if a member doesn't