Dealer concern over proposed change to client margin segregation
A more robust approach to ring-fencing client collateral will increase the cost of clearing over-the-counter derivatives in the US if it is made compulsory, dealers and clearing houses are warning. The idea was sketched out by the Commodity Futures Trading Commission (CFTC) during an industry roundtable in Washington, DC on October 22, and attempts to provide an alternative to so-called omnibus accounts – which are cheaper but riskier – and the firm but costly guarantee provided by individual
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe
You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@fx-markets.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@fx-markets.com
More on Collateral Risk Management
StanChart prime services to accept Chinese bonds as collateral
Inclusion will reduce collateral drag for PB clients ahead of stricter initial margin rules
CloudMargin secures $10m to fund growth
Provider of collateral and margin management deepens relationship with IHS Markit
Buy side explores cloud for collateral management
Asset managers with FX positions are looking at cloud-based solutions as a means of coping with variation margin rules
Lombard Risk launches buy-side collateral management tool
As asset managers and investment firms prepare for uncleared margin rules due in March 2017
Banks push for greater adoption of two-way CSAs
The Bank of England's decision in 2012 to start using two-way collateral model fails to spur change, and traders are calling for more to adopt the model
CFTC's Gensler defends swaps vs futures margin disparity
Forthcoming Sef rules will not address margin concerns raised by Bloomberg
Basel Committee and Iosco reopen FX exemption debate
A second consultative document from the Working Group on Margining Requirements gives the industry until March 15 to make its case again for an exemption from mandatory margin
‘Near-final’ margin rules to be issued within days, says Iosco chief
Secretary general of Iosco confirms that further work is needed to assess the economic impact of margin requirements for uncleared derivatives
