June 17, 2024 (NO COMMENTS)

Higher settlement obligations at Paris-based RepoClear blamed for €9bn spike

Liquidity risk surged 41.4% at LCH’s Paris-based clearing house in the first quarter, reaching a level not seen in almost five years. The largest potential loss the central counterparty (CCP) could face in the event of a single clearing member and its affiliates defaulting was €29.6 billion ($31.9 billion), up from €21 billion the previous quarter, and the highest since the €32.2 billion recorded in Q2 2019.