Managing Risk for the Exchange and Clearing House

The role of the clearing house is not a risk taker, where ere effectively a risk mutualize or a risk moderator. You could say, all right, well, why not over collateralize every position that i have, such that i will always have enough money? Then you ren a situation such as margin funding cost, a liquidity management cost and frictions. Does it make sense to get a more scientific a calculation on your risk models? Absolutely. And so those sets of things are some of the bigger challenges tha that clearing house's face.