Industry hails potential US relaxation of margin timing rules
Treasury’s proposed shift from T+1 for non-cleared swaps welcomed, but IM calculation comments draw fire
A US Treasury proposal to relax collateral timing requirements under new margining rules for non-cleared derivatives would tackle a problem that has forced some entities to flout the rules and in some cases led them to avoid trading with US counterparties, say market participants.
The US rules require covered entities to post and receive collateral the day after a non-cleared over-the-counter derivatives trade is executed, known as T+1. According to one industry association, entities required
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