US bilateral margin rules: a hit parade of horrors
The introduction of mandatory bilateral margining may have seemed one of the simpler strands of the post-crisis reform agenda, but as it swings into focus, the market is starting to panic. Here are the 10 biggest gripes with the US version of the rules. By Fiona Maxwell
Rules requiring margin to be exchanged on non-cleared swaps have been in the works for three years and are not set to take effect until the end of 2015, but in August the industry made a plea for more time – around 18 months' more time.
"December 2015 might sound a long way off, but once we explain what has to happen before then, you can see just how complex it's going to be," says Christopher Perkins, global head of over-the-counter clearing at Citi in New York.
Speaking on condition of
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