Non-cleared margin – a timeline
Milestones in the development of margin requirements for non-cleared trades
The storm around the introduction of variation margin rules on March 1, 2017 was just the latest in a long story of heartache in the financial industry caused by the rules surrounding margin requirements for non-cleared trades.
Alongside the regulatory initiative to move as many derivative trades as possible on to clearing platforms, regulators are pushing for new and higher margin requirements for trades that stay off them – both initial and variation margin. The result has been upheaval. Follow the issue from its beginnings with our timeline below.
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Asian buy side faces non-cleared margin currency penalty
Global banks charge premium for accepting local securities instead of major currencies
Read moreIndustry hails potential US relaxation of margin timing rules
Treasury’s proposed shift from T+1 for non-cleared swaps welcomed, but IM calculation comments draw fire
Read moreCompliance fears slow use of synthetic swaps to cut IM
Dealers want firmer guidance on whether technique to slash margin costs contravenes clearing mandate
Read moreBanks warn clients of possible unwinds as VM deadline nears
Clients on old CSAs told they face unwinds and trading bans unless repapering talks underway
Read moreBanks turn to synthetic derivatives to cut initial margin
Options-based instruments can halve initial margin for some non-cleared products, say dealers
Read moreVM repapering exercise ‘a swing and a miss’
Isda AGM: Banks picked up big bill but few benefits, says UBS ALM exec
Read moreBanks seek escape from inter‑affiliate margin burden
Internal transactions contributing “substantial” amount of banks’ initial margin requirement
Read moreHazy guidance causes chaos on first day of VM regime
"We don’t know what the rules are," says one senior banker
Read moreVague VM relief criteria creates trading uncertainty
Banks face lack of clarity on extent of margin rule forbearance
Read moreBuy-side firms seek ‘urgent’ VM relief
Two-thirds of firms have not signed any CSAs that comply with the new rules
Read moreGiancarlo: March VM deadline is ‘massive challenge’
CFTC commissioner calls on regulators to address buy-side concerns if needed
Read moreDocs shock: how dealers are tackling the VM deadline
Scale and complexity of negotiations raise fears many will be unable to trade from March
Read moreO’Malia: renegotiate VM docs now to avoid March mayhem
Risk USA: variation margin deadline much tougher than September 1, Isda chief warns
Read moreEight months needed for smooth Asia variation margin roll-out
The alternative is an unprecedented repapering exercise, writes Isda's Scott O'Malia
Read moreMargin rules lead to NDF clearing surge
Banks look to finally clear forex products, but options remain a challenge
Read moreBanks prepare for bumpy ride as margin deadline looms
Banks and funds may have limited set of counterparties on September 1
Read moreStrength turns to weakness for old OTC market
Non-cleared notional falls $36 trillion as costs and complexity grow
Read moreUS margin rules threaten clearing bottleneck
Fed estimates $2.5 billion annual cost of funding margin on bilateral trades
Read moreLack of non-cleared margin rules in Asia sparks dealer concern
Requirements for non-cleared swaps delayed until September 2016 but firms in Asia may still not be ready
Read moreProject Colin: why Goldman-led margin hub fell apart
Secretive group disbanded after dealers realised tech firms had similar plans
Read moreUS bilateral margin rules: a hit parade of horrors
US regime differs on currency, threshold, eligible collateral and non-financials
Read moreSimple, but sensitive: challenges face standard uncleared margin model
Simple, but sensitive
Read moreWGMR proposals raise procyclicality fears
Proposals on the margining of uncleared over-the-counter derivatives trades have been revised to dampen the potential liquid impact
Read moreUS dealers breathe easier as global uncleared margin rules take shape
The extraterritorial scope of US margin rules would have left US banks’ overseas swaps business in tatters, but an international working group looks set to deliver a reprieve by endorsing similar rules
Read moreBan on rehypothecation could increase derivatives costs
A number of hedge funds are now insisting margin posted on derivatives trades is not rehypothecated – a trend that could drive up costs
Read more