Industry disappointed by Basel persistence on margin
Market participants have reacted with irritation at the decision by the Basel Committee on Banking Supervision to persist in its efforts to enforce the holding of variation margin against forex swaps and forwards, despite the limited counterparty risk exhibited by those products.
In a second consultative document issued on February 15, the Working Group on Margining Requirements proposed to exclude physically settled FX swaps and forwards from a new regime for margining non-centrally cleared
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