17 Jun 2025
đź’°LCH SA's Revised Collateral Concentration Limits Approved
Self-Regulatory Organizations; LCH SA; Order Approving Proposed Rule Change Relating to Collateral Concentration Limits
Summary
The Securities and Exchange Commission has approved LCH SA's proposed rule change regarding collateral concentration limits for supranational and European agency securities. The change allows for individual limits per issuer, enhancing flexibility for clearing members while simultaneously implementing more conservative concentration guidelines per security type to mitigate risk exposure.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The text covers approval for revised collateral concentration limits by LCH SA, impacting clearing members’ capital requirements. Businesses must adjust collateral strategies and reassess risk management practices given the new limits, presenting potential for cost optimization and risk exposure adjustments.