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Clearinghouses had ‘sufficient funding liquidity to meet the variation payments resulting from defaults by two very large firms and, as applicable, the five largest customers from each firm.’
The CFTC’s recent settlement liquidity stress test analysis of three well-known clearinghouses — CME Clearing, ICE Clear U.S., and LCH, Ltd. — finds that all three could “meet their settlement obligations on time,” despite simulated defaults by clearing members. The CFTC analysis, which follows its initial supervisory stress test of clearinghouses that was published in...
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