How Does the Frequency of Variation Margin Calls Impact Liquidity Risk? ▴ Learn

How Does the Frequency of Variation Margin Calls Impact Liquidity Risk?

More frequent variation margin calls (e.g. intra-day instead of daily) reduce the credit risk exposure for the CCP but increase the liquidity risk for the clearing member. Members must be able to quickly access and post cash to meet the calls, which can strain their immediate cash reserves, especially during volatile markets.

How Does Collateralization (Margin) Work to Mitigate Counterparty Risk within a CCP Framework?

How Does the Introduction of a Central Counterparty (CCP) Change the Counterparty Risk Profile?

How Does the Size of a Mining Pool Relate to the Variance Experienced by Its Members?

How Does Netting Contribute to Reducing Overall Credit Exposure for a CCP?