Research paper on 'crowded trades' suggests under-margining in certain cleared market scenarios.

We just added a new blog feed from Albert Menkveld, Professor of Finance at VU University Amsterdam and Fellow at the Tinbergen Institute. Click "Follow" on his profile page to get updates from his site, onto your OTCS home page.

Albert wrote a paper in April 2014 on the concept of 'crowded trades' – in other words concentration risk in a cleared market which is available here. The paper demonstrates that in the equity market during periods of high volatility there may be a case for a higher level of IM due to the nature of activity in specific securities.