FX forwards users drop EU banks over margin rule

Other dealers do not have to collect margin on physically settled forwards

Stop
Crunch time: some fear jurisdictional differences will make hedging using FX derivatives less efficient

European banks are being cut from counterparty lists for some foreign clients – a result of rules that would force dealers to collect variation margin (VM) on currency forwards. Banks in other jurisdictions will be able to continue trading the products without margin after the rules take effect in the European Union in January 2018.

“What we are doing now is taking EU banks off the bank panel for our non-EU clients unless those clients want to collateralise,” says James Wood-Collins, chief

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: