Variation margin
WHAT IS THIS? Variation margin is a payment – typically made daily, in cash – to reflect changes in the market value of a trade, or portfolio of trades. In over-the-counter derivatives markets, variation margin is traditionally seen as a buffer against counterparty default; in listed derivatives, it is treated as settlement.
Final EU non-cleared margin rules softened for pension funds
No margin concentration limits for pension funds, but intragroup rules threaten US equivalence
Non-cleared margin transfer rules vex asset managers
Market split on whether MTA applies at the client or account level
EU non-cleared margin regime set to take effect in January 2017
EC expected to publish its final non-cleared margin rules on October 4
New margin timing rules may pose problems for buy side
Dealers warn clients could struggle to meet incoming T+1 deadline for variation margin
Non-cleared margin rules unsettle Asian booking hubs
European banks reluctant to rely on complicated exemptions for inter-affiliate trades
CFTC split as it endorses Japanese margin rules
Substituted compliance ruling means parties will not face worst-of-both-worlds regulation
CFTC relief caps day of swaps margin mayhem
Banks unable to face up to 50% of counterparties due to custodian bottlenecks
Banks prepare for bumpy ride as margin deadline looms
Banks and funds may have limited set of counterparties on September 1
CVA models may miss half of true default risk
Benefits of initial margin also overstated, new research finds
BoE researchers outline risk of collateral collapse
In stress periods, collateral chains could break, paper warns
EU non-cleared margin rules tipped for February
Regime likely to begin earlier than mid-2017, say regulatory sources
US regulators favour September margin deadline
September 1 roll-out would threaten bilateral swap trading chasm between EU and US
Delay US non-cleared margin rules, industry tells Congress
“This puts the US banks at a huge disadvantage relative to the European banks,” says CME’s Duffy
US, EU uncleared margin rules ‘impossible’ for Asia
US, EU insistence on next-day variation margin settlement criticised by Apac lenders
Europe set to delay variation margin regime
Delay to initial margin deadline likely to be accompanied by smaller shift in variation margin timetable
Banks fear early rollout of EU margin rules for forex forwards
Industry calls on EC to clarify when foreign exchange forwards will be subject to variation margining
Regulatory intervention triggers complicate CCP resolution
Isda AGM: Role of supervisors will vary for each situation, say market participants
Standardisation ‘a must’ for uncleared swaps
Isda AGM: Standard products and contracts key to product's future, say trading execs
Mac swaps, swap futures face new tax threat
Isda urges US tax officials to postpone rule treating certain payments as loans
Questions remain after final EU uncleared margin rules
Industry gives a positive welcome, but the treatment of non-netting jurisdictions is still uncertain
Q&A: FDIC’s Hoenig warns on daily settled swaps
FDIC vice-chair on leverage-cutting schemes, TLAC and TBTF
Smaller firms get boost on timing for non-cleared margin
Counterparties will be able to offset extra collateral calls, says source close to EBA
US end-users risk tax hit in move to daily settled swaps
Changing treatment of variation margin could benefit banks, but hurt clients
EC urged to target initial margin for CCP recovery
Irish central banker says haircuts should be seen as temporary loans to CCPs in a crisis