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https://www.risk.net/risk-management/7964301/non-bank-dealers-urge-rethink-on-ficc-default-fund-reshuffle
CEO of South Street Securities Holdings Inc., James Tabacchi, was quoted in Risk.net's "Non-Bank Dealers Urge Rethink on FICC Default Fund Reshuffle" by Paulina Pielichata. The article examines FICC's proposed changes to its default fund structure ahead of the SEC's U.S. Treasury clearing mandate.
On how the cost of the new structure should be allocated, Tabacchi said: "The firms with the most systemic risk should pay for their risk at the source." He added: "There's a place in the market for non-systemic firms, and they should be treated as non-systemic."
On next steps, Tabacchi noted: "We are in detailed conversations with both FICC and regulators, and expect to resolve this allocation issue as soon as possible."
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https://www.risk.net/risk-management/7964301/non-bank-dealers-urge-rethink-on-ficc-default-fund-reshuffle
