On Oct. 20, ICE CEU amended policy to clarify energy contract margins.
ICE CEU self-certified to the CFTC, amendments to its futures and options risk policy to make certain updates and clarifications re its margin period for energy contracts.
Amendments
Clarifies when initial margin will be calculated using a one-day margin period of risk.
Calculation will be based on a determination that considers the default management process and the period needed to complete the liquidation of the defaulter’s position.
Eliminates provision that a one-day margin period of risk is only applicable for energy contracts.
Clarifies ongoing policy reviews, criteria assessed during reviews, consultation with stakeholders, oversight by senior personnel and committees, remediation of findings.
Clarifies exception handling and removes an outdated requirement that exceptions be approved by the Executive Risk Committee and notified to the Client Risk Committee.
Effectiveness
Amendments will become effective on the first business day following the tenth business day after submission, or such later date as ICE Clear Europe may determine.
