Uncleared margin rules could hold back new CSA adoption
New rules on the margining of uncleared derivatives could hold back adoption of a new standard credit support annex (CSA) if regulators decide to stick with a controversial new haircut meant to minimise foreign exchange risk, some dealers acknowledge.
The haircut requirement appears in the appendix of new proposals on the margining of uncleared derivatives, published on February 15 by the Working Group on Margining Requirements (WGMR) – a body led by the Basel Committee on Banking Supervision
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@fx-markets.com
More on Derivatives
Ruble turmoil prompts calls to fix NDF contracts
Some market participants want to see offshore fixings as an option in all standard documentation
Russian invasion stirs up ‘perfect storm’ for XVA desks
Declining credit quality of Russian companies and spike in inflation threaten CVA and FVA double-whammy for banks
EU’s IM model validation rules may put Simm in jeopardy
Draft RTS creates validation hurdles and cross-border conflicts, industry warns
IM phases five and six collide as buy side delays readiness
More than 1,000 segregated accounts for uncleared margin may still need to be opened post-deadline
First Ibor versus SOFR cross-currency swaps trades
Westpac and Citi strike BBSW/SOFR trade in landmark moment for Australian market
Crédit Agricole’s head of FX options departs
Andrew Soper leaves French bank to pursue other opportunities
Eurex faces more delays to cross-currency swap clearing
Clearing house eyes June release; dealers voice concerns over liquidity and margining
US agencies move to protect swaps after week of Brexit chaos
Fed gives legacy swaps a margin break to help fend off risk of contractual limbo
