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Clearers strive to solve the collateral challenge

Ever since the financial crisis, when it seemed like any firm could blow up at any moment, regulators have insisted on one thing more than anything else: insurance against it happening again.

Clearers strive to solve the collateral challenge
Photo: Getty Images
Clearers strive to solve the collateral challenge
Photo: Getty Images

Ever since the financial crisis, when it seemed like any firm could blow up at any moment, regulators have insisted on one thing more than anything else: insurance against it happening again.

While this insurance comes in many forms, one of the most visible has been a new and rigorous oversight of how much collateral, or margin is placed against derivatives trades, in order to guarantee them should either party to a trade collapse.

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