Liquidity risk hits five-year high at LCH
Higher settlement obligations at Paris-based RepoClear blamed for €9bn spike
Liquidity risk surged 41.4% at LCH’s Paris-based clearing house in the first quarter, reaching a level not seen in almost five years.
The largest potential loss the central counterparty (CCP) could face in the event of a single clearing member and its affiliates defaulting was €29.6 billion ($31.9 billion), up from €21 billion the previous quarter, and the highest since the €32.2 billion recorded in Q2 2019.
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