Indian initial margin launch brings operational headaches
Conglomerates with multiple entities trading derivatives pose compliance challenges for dealers
With the deadline for Indian market participants to implement local initial margin rules for non-cleared derivatives approaching in November 2024, legal experts say dealers face significant hurdles onboarding large conglomerates.
“One interesting discussion we have in the industry is that the initial margin regulation is applicable to a consolidated group level,” says a senior risk manager at an Indian bank. “There will be entities of various sizes within the group” trading derivatives, they add
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