Key facts
- Commodity-linked clearing services experienced a surge in initial margin breaches during the first quarter.
- Most central counterparty units did not see a similar increase in breaches.
- Market turmoil, partly due to the Iran war, did not significantly impact most clearing houses' backtesting exceptions.
- Japan Securities Clearing Corporation, Ice Clear Europe, and European Commodity Clearing were noted as exceptions.
Commodity-linked clearing services were among the few central counterparty units to experience a surge in initial margin breaches in the first quarter. This trend contrasts with most clearing houses, which managed to avoid an increase in backtesting exceptions despite market volatility, including that stemming from the Iran war.
Notable outliers that did see a rise in breaches include the Japan Securities Clearing Corporation (JSCC), Ice Clear Europe, and the European Commodity Clearing (ECC). The article suggests these entities stood out against the general trend of stability observed across other clearing houses.