7 May 2025
📈ICC Proposes Changes to Risk Management and Margin Policies
Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to ICC's Risk Parameter Setting and Review Policy and the Risk Management Model Description
Summary
The SEC approved ICC's proposed rule changes to its Risk Parameter Setting and Review Policy, enhancing its risk management framework. The updates include daily adjustments to risk parameters and improved documentation methods, aiming to mitigate procyclicality and ensure timely responses to market conditions. These changes are designed to bolster the robustness of clearing operations and safeguard financial stability.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The Proposed Rule Change by ICC updates margin calculations and risk management policies, impacting clearing participants by potentially leading to higher margin requirements and more frequent risk assessment updates. These changes are critical for compliance with SEC regulations affecting financial transactions.