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As I understand it on-the-run clearing is about demanding collateral for leveraged trade. Matt Levine has written about it better than I ever could.
by csours 4y ago
As I understand it on-the-run clearing is about demanding collateral for leveraged trade. Matt Levine has written about it better than I ever could.
- misja111 4y agoTraditional clearing does that as well, this is the so called 'margin call'. What's different in on-the-run clearing is that the check happens every 30 seconds, while traditional clearing typically happens between trading days.