Simple, but sensitive: challenges face standard uncleared margin model

The industry has started work on a standard margin model for uncleared derivatives trades, but it faces some significant obstacles and a tough deadline. Luckily, there already seems to be some consensus about the direction to take. By Laurie Carver

Part of warfare is knowing when a battle is lost, minimising casualties, and redeploying troops to territory that can be successfully defended. Derivatives dealers know the drill. Having opposed plans for the margining of uncleared over-the-counter trades since they were first proposed in July last year, the International Swaps and Derivatives Association has now convened a committee that will design a standard model for use in the new regime.

The war is not over – Isda pledged to continue