On Jul. 31, ICE CEU issued rules on USD and GBP margin requirement.
ICE CEU issued Circular C24/053 entitled Introduction of minimum cash requirement for USD and GBP margin, on changes to the required cash collateral requirements.
Follows ICE CEU Oct. 2022 minimum cash requirement for EUR margin, see #151296.
Circular Summary
Clearing members are advised changes will be made to Margin requirements applicable to them under the Clearing House Rules, under Rule 502(d), for GBP and USD Margin obligations a minimum of 45% Margin must be held in GBP and USD cash, respectively.
This requirement is in line with minimum cash requirement for EUR Margin obligations, set out in Circular C22/122, for all Margin Accounts, except DCM Customer Accounts.
Pursuant to Rule 502(f), clearing members are required to transfer cash in GBP and USD to the clearing house in substitution for Permitted Cover already transferred to the clearing house to the extent required to comply with requirement set out above.
For avoidance of doubt, minimum cash requirement of 45% specified above must be satisfied on an ongoing basis and a substitution of cash Margin with other Permitted Cover will only be permitted if it does not breach the requirements specified above.
Members and participants should ensure that the appropriate members of staff within their organisations, and all their customers, are advised of the content of the Circular.
Effectiveness
Subject to the completion of relevant regulatory processes, this requirement will be reflected in all relevant margin calls made on Tuesday Dec. 3, 2024, and thereafter.
Nov. 2024 Reminder
On Nov. 4, 2024, ICE CEU issued Circular C24/081 as a reminder to members about implementation of changes to cash collateral requirements to manage liquidity risk.
Members advised of changes to margin requirements per clearing house rules.
Requirement will become effective from the close of business on Dec. 2, 2024 and will be reflected in margin calls made on Dec. 3, 2024 and thereafter.
