Stats › Intraday and market microstructure › One member default
A single private individual's default in September 2018 consumed two thirds of the surviving members' contributions to a European clearing house default fund
| Date in 2018 or later | What happened |
|---|---|
| 11 September 2018 | the clearing house learned that a clearing member, its only natural person member, was in default. An auction was run that day |
| 12 September 2018 | second auction day. First press release issued at about 11 at night |
| The portfolio was not sold | bidders were offered contracts that went into a new mirror portfolio intended to offset the defaulted derivatives |
| 17 September 2018 | the default fund was fully recapitalised |
| 19 September 2018 | second press release |
| 26 November 2018 | a separate margin model configuration error under collected approximately 50 million euro across all members, largest single member shortfall approximately 42 million |
| June 2019 | both portfolios transferred to a third party, about ten months after the default |
| 30 September 2019 | the last date on which private individuals could be clearing members of this house |
| 26 January 2021 | the supervisor issued a warning and a fine of 300,000,000 krona |
Reconstructed from the supervisor's own financial stability report of 27 November 2018 and its enforcement decision of 26 January 2021.
Two documents from the same supervisor give two different loss figures for the same event, 114 million euro and between 250 and 350 million krona. Both are printed. The clearing house was fined 300 million krona two years later.
114m euro, one figureLoss on closing the position
250m to 350m krona, another figureFinal losses for members
two thirdsShare of surviving members' contributions used
300,000,000 kronaFine imposed on the clearing house
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