As a likely result of this worldwide effort to improve market resiliency against unavoidable crisis, CCPs, in particular European ones, remained resilient trough the COVID-19 crisis, due to effective Business Continuity Plans and robust margin models.
Still, too conservative margin calls, instead of safeguarding the financial market stability, can cause harmful liquidity stress for market participants.
In other words, the medicine would be worse than the disease.
Central Counterparts, as part of their Daily Margin Process with their clearing members, are enhancing their Initial Margin computation methodology. Historically based on a SPAN model or equivalent Risk aggregation models,