ICE Clear US implements concentration charge for agricultural futures and options
On July 17, ICE Clear US implemented a new concentration charge for positions held by clearing members that are above a certain threshold. The new policy will apply only to agricultural contracts. The concentration charge will apply when a clearing member’s overnight position in either the customer or house origin exceeds its position threshold. The threshold represents the number of positions that can be liquidated in one day and is a percentage of each contract’s average daily volume. The concentration charge is based on increasing the margin holding period for positions that exceed the threshold. The lengthened holding period represents the additional time needed to liquidate a clearing member’s position that exceeds its threshold.
