logo

Exchange and clearinghouse condemned for RV Capital collapse

by Paul Francis-Grey

Euronext Liffe and LCH Clearnet (LCH-C) have both come under fire for the way they dealt with the run up towards the RV Capital (RVC) collapse.Sources close to the fallen options market maker said that RVC’s dive into administration could have possibly been avoided if action had been taken by the exchange or margin limits were set higher by the clearinghouse.“In my opinion margins were set too low. Margin calls were wrong and were not of sufficient size. You have to ask yourself if it was the margining that failed the FCM,” said a source closely connected to the...

The rest of this article is for subscribers only. Would you like to take a free trial?

Free trial

  • News & Analysis access
  • Extensive data searches
  • Access to archive
  • Weekly newsletter