FSB comments on FX margin surprise industry
The FSB’s call for the Basel Committee and CPSS to set provisions on variation margin for FX derivatives appears to cross over with the Working Group on Margin Requirements, say observers
The Financial Stability Board has added its voice to the debate over whether collateral should be posted against foreign exchange swaps and forwards, calling on the Basel Committee on Banking Supervision and Committee on Payment and Settlement Systems (CPSS) to "set out strong provisions on variation margin" for forex derivatives.
The statement was made last week after its plenary meeting in Zurich, and has baffled some observers. A joint working group of the two bodies published a set of
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