LCH Clearnet Ltd., Europe’s biggest clearing house, raised the extra deposit it demands from clients to trade some Spanish and Italian government bonds, it said today in a statement on its website.
The margin for trading Spain’s securities maturing in seven to 10 years will increase to 12.2 percent from 11.8 percent, according to the statement. For debt due in 10 to 15 years it will climb to 16 percent from 14.7 percent, and for 15- to 30-year bonds, the charge will be 20 percent, up from 17.9 percent.
Spain’s government bonds plunged today, pushing 10-year yields to a euro-era record of 7.57 percent, amid concern the nation will need to offer financial support to its regions. Rates on similar-maturity Italian debt jumped as much as 26 basis points, or 0.26 percentage point, to 6.43 percent, the highest since January.
For Italian debt, LCH will raise margins for securities due in two to 3.25 years, seven to 10 years and 15 to 30 years, LCH said. The rates for the latter will increase to 20 percent from 18 percent.
The changes are effective at the market close today and will be reflected in margin calls tomorrow, LCH said.