Eurex urges more regulators to endorse VM capital savings
CME, Ice and LCH treat variation margin as settlement; Eurex awaits further guidance
Eurex Clearing has urged European supervisors to provide clarity on whether variation margin (VM) can be treated as settlement of a cleared swap. Currently, only Credit Suisse and UBS are known to employ the practice as a way of cutting capital requirements on cleared portfolios, with the backing of the Swiss regulator.
Last month, US regulators also gave what banks believe is a green light to begin treating VM as settlement.
“So far, no similar guidance has been provided by European
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