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MF Global apparently did not follow CME rules mandating that brokerage firms report immediately when client accounts fell below minimum collateral requirements, or were "under-segregated".
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That was approximately 11.6 percent of the minimum collateral requirement for MF Global.
About one-third of OTC trades require no margin or collateral requirements at all.
That would subject the contracts to margin and collateral requirements.
"We are trying to ensure there is minimum collateral damage and minimum displacement of local people".
While Mr. Dimon admits raising collateral requirements, he denies causing the demise of Lehman or Merrill.
Whereas banks could tailor collateral requirements to the nature of their customers, CCPs will impose uniform margin requirements on everyone.
"Weaker collateral requirements mean the policyholders are at greater risk," he said.
In the final phase, lenders raise collateral requirements.
The study sought to establish the influence of collateral requirements on access to finance.
The study found that collateral requirements influence access to finance by SMEs in Mozambique.
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