Edwin Schooling Latter, the Bank of England's head of payments and infrastructure, says transparency at central counterparties is particularly important because they are charged with ensuring the safety of the derivatives market. "I have heard CCPs say, 'Our margin model is proprietary' or that 'The model can be gamed by the industry'," Schooling Latter said. "In the first case, it's not acceptable for a private company managing a CCP to say, 'We won't tell you how we manage risk'. And if the margin model is weak, then change it."

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