End-users will stop using derivatives – Risk.net poll

Proposals to require derivatives users to post initial margin on uncleared trades will cause many end-users to stop using derivatives, say a majority of survey respondents

End-users will stop using derivatives if proposed margin requirements on uncleared trades come into force, according to a majority of Risk.net readers.

Sixty per cent of respondents to a survey thought end-users will opt not to use derivatives as a result of proposals published in July by the Working Group on Margining Requirements – a body run jointly by the International Organization of Securities Commissions and the Basel Committee on Banking Supervision. If those rules come into force