What Is the Role of the Clearing House in Managing Margin Calls during Volatility?

The clearing house acts as the central counterparty to all trades, guaranteeing the settlement of futures contracts. During volatility, it is responsible for calculating and issuing margin calls to ensure all traders maintain sufficient collateral.

If a stablecoin de-pegs, the clearing house must rapidly re-evaluate the collateral's value and manage the increased risk of default from counterparties.