In an unprecedented move, the FICC has just announced a new charge for increased Volatility around certain Fed releases – starting Monday.
The charge will = 10% of members' VaR, accruing two days prior to, and the day of the specified Events below (/if conditions are met). pic.twitter.com/x7FgOaWdwj
— M.B. (@741trey) April 12, 2024
This means that the Fixed Income, Currency, and Commodities (FICC) division has introduced a new fee related to heightened volatility during specific Federal Reserve (Fed) releases. The fee will be equivalent to 10% of members’ Value at Risk (VaR) and will be applied two days before and on the day of specified events if certain conditions are met.
The measure appears aimed at managing risk and potentially stabilizing the market during volatile periods surrounding key Fed releases.
Never forget, this time it’s different pic.twitter.com/ZpbTQEzdtB
— Michael A. Arouet (@MichaelAArouet) April 14, 2024
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