LCH.Clearnet ups margin requirement on Irish bonds

LONDON, Nov 25 (BestGrowthStock) – European clearing house
LCH.Clearnet has increased the margin requirement on Irish
government bonds by 15 percent to 45 percent of net positions of
its margin rate, citing higher 10-year Irish bond yields over
triple-A euro zone benchmarks such as German Bunds.

“This decision is based solely on publicly available yield
spread data and in no way represents a forward looking market
view,” it said in a circular to memebers posted on its website.

“LCH.Clearnet will continue to monitor yield spreads closely
and keep the parameters under close review.”

This is the third time in about two weeks the clearing house
has raised the margin requirement to trade Irish sovereign bonds
after the 10-year yield gap over German Bunds ballooned to euro
lifetime peaks above 650 basis points, excessing LCH.Clearnet’s
threshold of 450 bps.

(Reporting by Emelia Sithole-Matarise)

LCH.Clearnet ups margin requirement on Irish bonds