Dealer concern over proposed change to client margin segregation
A more robust approach to ring-fencing client collateral will increase the cost of clearing over-the-counter derivatives in the US if it is made compulsory, dealers and clearing houses are warning. The idea was sketched out by the Commodity Futures Trading Commission (CFTC) during an industry roundtable in Washington, DC on October 22, and attempts to provide an alternative to so-called omnibus accounts – which are cheaper but riskier – and the firm but costly guarantee provided by individual
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