European regulators slammed for uncleared margin ‘sleight of hand’
Widened scope of variation margin rules angers buy side
European regulatory bodies, including the European Banking Authority (EBA) and the European Securities and Markets Authority (Esma), have attracted criticism from buy-side firms and industry bodies for proposing widening the scope of counterparties required to post variation margin on some uncleared over-the-counter FX derivatives.
In discussions about the European Market Infrastructure Regulation (Emir), the industry had assumed the posting of variation margin on FX swaps and forwards, which
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