Uncleared margin kick-in raises clearing-house rules

In the run-up to the new rules coming into force in the US and Japan, volumes surge on ForexClear

Gaining attention: clearing houses are seeing increasing interest from market participants

Margin rules for uncleared swaps are set to kick in on September 1 in the US and Japan, raising hopes that clearing firms will see a pick-up in volumes from foreign exchange contracts, including non-deliverable forwards (NDFs).

New rules will mandate the exchange of initial and variation margin on non-cleared swaps between counterparties with more than $3 trillion in aggregate daily notional exposure, but only in the US and Japan. Other jurisdictions, such as Europe, are delaying implementation