22 August 2017
visit www.avoka.com

LCH.Clearnet launches cross-margining on commodities

16 January 2008  |  1562 views  |  0 Source: LCH.Clearnet

LCH.Clearnet SA is pleased to announce the introduction of cross-margining between wheat and corn futures and options contracts listed on the Liffe Paris derivatives market.

During 2007, following the growth of wheat and corn prices, the price correlation observed between the two products increased substantially, allowing LCH.Clearnet SA to introduce cross margining. As a consequence, margin calls linked to positions in spreads between wheat and corn futures and options contracts will benefit from a 55% margin reduction. This decrease may be adjusted should the degree of price correlation change.

The new credit for inter-commodities spreads between wheat and corn was implemented on 15 January 2008. This is the first time LCH.Clearnet SA has introduced cross-margining on commodities. Cross-margining is already available on the strongly correlated CAC 40, BEL 20 and AEX futures and options indices.

Commenting on the initiative, Vincent Gros, General Secretary at LCH.Clearnet SA, said: "We continuously work to improve our risk management framework to reflect the evolving environment, and we are sure that our clients will appreciate our efforts to reduce the scale of their margin obligations."

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11978 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
10417 views comments | 22 tweets | 32 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9936 views 0 | 5 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9712 views comments | 10 tweets | 8 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9644 views comments | 19 tweets | 23 linkedin