Non-cleared margin transfer rules vex asset managers

Market split on whether MTA applies at the client or account level

The wording of the rules is causing confusion for market participants

A discrepancy in the language used in the US non-cleared margin rules has sowed confusion over whether asset managers or their clients will be responsible for posting variation margin on separate accounts.

Under the rules, a "covered swap entity and its affiliates" must collect or post initial margin when its aggregate credit exposures to "a counterparty and its affiliates" exceed the initial margin threshold amount, set at $50 million. Where asset managers run separate accounts for large