Banks claim €300 billion hole in margin study

Banks call for Basel Committee and Iosco to rerun study on impact of uncleared margin rules after errors emerge

Dealers are calling for a new study of proposed margin rules for uncleared derivatives trades, after it emerged the industry may have significantly understated collateral requirements for the original quantitative impact study (QIS) last year. Banks were asked to estimate initial margin requirements under a proposed new global regime, assuming posting threshold levels of up to €50 million – exposure below the threshold would not need to be collateralised. But many banks applied the threshold to