Cross-border trading could suffer under IM rules
Conflicting US and EU cash reinvestment rules may force buy side to post bonds
A discrepancy between the US and European versions of the non-cleared margin rules means asset managers could be prevented from posting cash collateral when trading with foreign counterparties.
Hundreds of buy-side firms must start posting initial margin on their non-cleared derivatives trades from later this year, with cash being the preferred option. Cash posted as collateral against non-cleared trades must be reinvested in government money-market funds (MMFs).
However, the US rules
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