- VaR as the new risk methodology[1] will be applied across 12 regulated markets and MTFs
- VaR captures all risk factors and respective correlations through a standard approach requirement and has an enhanced capacity to adapt to market volatility
- Reaffirms EquityClear SA’s commitment to improving efficiency for its clearing members
#LCH #EquityClear SA has gone live with its new margin framework. The Value at Risk (VaR) methodology has been applied across all unsettled cash equity positions on EquityClear SA across 12 regulated markets and MTFs cleared by the service: https://t.co/o5alYbhl1d #clearing pic.twitter.com/yrVE4dVopM
— LCH, An LSEG Business (@LCH_Clearing) July 12, 2022
LCH EquityClear SA announced it has gone live with its new margin framework. The Value at Risk (VaR) methodology has been applied across all unsettled cash equity positions on EquityClear SA across 12 regulated markets and MTFs cleared by the service. The new risk methodology is based on several key pillars:
- Better recognition of clearing members diversified portfolios
- Well balanced model between anti-procyclicality and fair coverage
- Additional margin enhancements offering a coherent model approach
- Enhanced capacity to support stability and predictability of the margin requirement
The VaR based framework is part of EquityClear SA’s continued commitment to better serve its clearing members through increased margin efficiency, an enhanced set of reports, trading venue access expansion and growing local CSD connections.
Christine Huant, Head of EquityClear and CommodityClear SA First Line Risk, LCH SA said “The launch of the VaR based risk framework on cash equities for LCH EquityClear SA is an important step forward. It significantly improves the safety of the market with a well-balanced model between anti-procyclicality and level of coverage. This new risk framework also brings more flexibility, enriching our offering for clearing members.”[1] The VaR methodology for cleared cash equities replaces the previous risk methodology that was based on SPAN®.
Source: LCH
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
It's been a month since we had our Women In Finance Awards in New York City at the Plaza! Take a look back tab some moments, and nominate for our upcoming awards in Mexico City and Singapore here: https://www.marketsmedia.com/category/events/
4
Citadel Securities told the SEC that trading tokenized equities should remain under existing market rules, a position that drew responses from various crypto industry groups. @ShannyBasar for @MarketsMedia:
SEC Commissioner Mark Uyeda argued that private assets belong in retirement plans, saying diversified alts can improve risk-adjusted returns and that the answer to optimal exposure “is not zero.” @ShannyBasar reporting for @MarketsMedia:
COO of the Year Award winner! 🏆
Discover how Jennifer Kaiser of Marex earned the 2025 Women in Finance COO of the Year recognition.
Related articles
-
A single multi-asset clearing house will allow the group to compete for higher margin business.
-
The model streamlines buy-side access to the Euro‑denominated repo market.
-
DiSH enables 24/7 instantaneous movement of commercial bank money in multiple currencies & jurisdictions.
-
Average daily clearing volume rose 35%.
-
The service was developed as the industry prepares for the SEC’s expanded U.S. Treasury clearing rules.