Traditional risk-weightings and models cannot account for crypto's high volatility or market behavior, according to a Federal Reserve paper.New analysis publishedTraditional risk-weightings and models cannot account for crypto's high volatility or market behavior, according to a Federal Reserve paper.New analysis published

Fed paper proposes initial margin weights for crypto-linked derivatives

2026/02/13 06:05
1 min read

Traditional risk-weightings and models cannot account for crypto's high volatility or market behavior, according to a Federal Reserve paper.

New analysis published Wednesday by the Federal Reserve proposes that crypto be categorized as a distinct asset class for initial margin requirements used in “uncleared” derivatives markets, including over-the-counter trades and other transactions that do not pass through a centralized clearinghouse.

Fed paper proposes initial margin weights for crypto-linked derivatives

The working paper said that is because crypto is more volatile than traditional asset classes and does not fit into the risk categories outlined in the Standardized Initial Margin Model (SIMM) that classifies asset classes.

These include interest rates, equities, foreign exchange and commodities, according to authors Anna Amirdjanova, David Lynch and Anni Zheng.

Read more

Market Opportunity
Notcoin Logo
Notcoin Price(NOT)
$0.0003911
$0.0003911$0.0003911
-0.53%
USD
Notcoin (NOT) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Pi Network Officially Enters Open Mainnet Phase III, A New Era of Crypto and Web3 Begins

Pi Network Officially Enters Open Mainnet Phase III, A New Era of Crypto and Web3 Begins

Pi Network has once again captured global crypto attention following the official announcement of its transition into Open Mainnet Phase III. This milestone re
Share
Hokanews2026/02/13 12:41
Cloud mining is gaining popularity around the world. LgMining’s efficient cloud mining platform helps you easily deploy digital assets and lead a new wave of crypto wealth.

Cloud mining is gaining popularity around the world. LgMining’s efficient cloud mining platform helps you easily deploy digital assets and lead a new wave of crypto wealth.

The post Cloud mining is gaining popularity around the world. LgMining’s efficient cloud mining platform helps you easily deploy digital assets and lead a new wave of crypto wealth. appeared on BitcoinEthereumNews.com. SPONSORED POST* As the cryptocurrency market continues its recovery, Ethereum has once again become the center of attention for investors. Recently, the well-known crypto mining platform LgMining predicted that Ethereum may surpass its previous all-time high and surge past $5,000. In light of this rare market opportunity, choosing a high-efficiency, secure, and low-cost mining platform has become the top priority for many investors. With its cutting-edge hardware, intelligent technology, and low-cost renewable energy advantages, LgMining Cloud Mining is rapidly emerging as a leader in the cloud mining industry. Ethereum: The Driving Force of the Crypto Market Ethereum is not only the second-largest cryptocurrency by market capitalization but also the backbone of the blockchain smart contract ecosystem. From DeFi (Decentralized Finance) to NFTs (Non-Fungible Tokens) and the broader Web3.0 infrastructure, most innovations are built on Ethereum. This widespread utility gives Ethereum tremendous growth potential. With the upcoming scalability upgrades, the Ethereum network is expected to offer improved performance and transaction speed—likely triggering a fresh wave of market enthusiasm. According to the LgMining research team, Ethereum’s share among institutional and retail investors continues to grow. Combined with shifting monetary policies and global economic uncertainties, Ethereum is expected to break past its previous high of over $4,000 and aim for $5,000 or more in the coming months. LgMining Cloud Mining: Unlocking a Low-Barrier Path to Wealth Traditional crypto mining often requires expensive mining rigs, stable electricity, and complex maintenance—making it inaccessible for the average person. LgMining Cloud Mining breaks down these barriers, allowing anyone to easily participate in mining Ethereum and Bitcoin without owning hardware. LgMining builds its robust and efficient mining infrastructure around three core advantages: 1. High-End Equipment LgMining uses top-tier mining hardware with exceptional computing power and reliability. The platform’s ASIC and GPU miners are carefully selected and tested to…
Share
BitcoinEthereumNews2025/09/18 03:04
Solar and Internet from Space: The Future of Global Connectivity and Energy Supply

Solar and Internet from Space: The Future of Global Connectivity and Energy Supply

Quiptik broke his promise to post weekly articles on HackerNoon. He was unable to access the internet and electricity in his home country for some reasons. Until we fix power and internet access, many voices will keep going unheard.
Share
Hackernoon2025/09/18 14:47