Banks fear early rollout of EU margin rules for FX forwards
Industry calls on the European Commission to clarify when FX forwards will be subject to a variation margin requirement
A quirk in the drafting of the European Union's forthcoming bilateral margin framework for uncleared derivatives has left industry participants fretting that foreign exchange forwards could be subject to variation margining (VM) much sooner than expected – possibly even before the rules' official implementation date of September 1.
The wording of Article 39(6) of the European Supervisory Authorities' (ESAs) final draft Regulatory Technical Standards (RTSs) for the EU's non-cleared margin rules
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