Ronin Capital was Unable to Meet Capital Requirements at CME
Posted on 03/20/2020
According to the CME, clearing firm Ronin Capital, LLC unable to meet capital requirements. Ronin Capital’s issues were tied from positions in futures tied to the CBOE Volatility Index, or the security that tracks market volatility. Ronin Capital is based in Chicago and was formed in 2001 and is a broker dealer with proprietary trading operations encompassing equity, fixed income, and derivative securities. The majority owner of Ronin Capital is Zen Holdings, LLC. John S. Stafford, Jr. is a co-founder of Ronin Capital.
CME Group Inc. is a global markets company and owner of the world’s largest futures exchange,
CME was forced to step in and invoke its emergency protocols to auction off the portfolios.
The DTCC issued a statement to SWFI, “The Government Securities Division (GSD) of DTCC’s Fixed Income Clearing Corporation (FICC) ceased to act for Ronin Capital LLC as of March 20, 2020. DTCC will continue to take all actions deemed necessary to resolve all outstanding obligations and other pending matters. DTCC is working to perform an orderly winddown of Ronin Capital LLC’s positions at FICC to protect market safety and stability.”
CORRECTION: DTCC was not involved in the auction.
