Nasdaq default came at time of mass margin breaches
The default at Nasdaq Commodities in September 2018 occurred during a period when many clearing members incurred margin breaches, public disclosures show.
On September 11, lone trader Einar Aas was declared in default by the central counterparty (CCP) after failing to post sufficient margin to cover losses suffered from the widening of the spread between Nordic and German power futures. The default wiped out his initial margin, €7 million ($8 million) of Nasdaq's own capital and two-thirds of
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe
You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@fx-markets.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@fx-markets.com
More on Operational Risk
Outlook for e-FX: opportunities and risks for banks
As electronification spreads into new areas of FX trading, banks are under pressure to digitise more of their offerings to remain competitive. The race is now on to automate pricing, trading and hedging in areas such as non-deliverable forwards, swaps…
Rise of workflow as the buy side's low-key hero
The goal is to build a “single source of truth” to cut costs, make better trading decisions and react quickly to new regulation
LCH shakes up compression vendor fee structure
Proposals follow criticism that the current regime favours TriOptima
Tokenisation: the flipside of the coin
Turning traditional assets into digitally traded data is much harder than it seems
LCH to clear over-the-counter FX NDFs in Japan
Until now, Japanese-based entities relied on overseas subsidiaries to clear FX trades
LCH launches FX options clearing
The first clearing service for deliverable FX is available initially for eight currency pairs
CLS rolls out monitoring tool for asset managers
Market participants gain real-time view of the trades they submit to CLS
CLS and Traiana expand aggregation to non-CLS currencies
The service now includes offshore Chinese renminbi, Russian ruble, Turkish lira and Polish zloty