Wednesday, November 9, 2011

LCH.Clearnet raises margin requirements on Italy debt

Market Stalls As LCH Announces Margin Hikes On Italian Debt Headlines for now but chatter is that LCH will lift charges on Italian bonds effective close today (Wednesday November 9th). The details can be found here. *LCH COMMENTS ON ITALY BOND DEPOSIT CHARGES IN WEBSITE DOCUMENT LCH Raises Deposit Charge on 10-Yr Bonds to 11.65% From 6.65%
More:The deposit factor for Italian bonds due in seven-to-10 years will rise to 11.65 percent, the French unit of LCH Clearnet said. That compares with a charge of 6.65 percent announced on Oct. 7. Clearing houses guarantee that investors’ trades are completed by standing in the middle of two counterparties, and raise margin requirements to protect themselves against losses should one side of the trade fail.

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