Initial margin urgency concerns market

Author: Karry Lai | Published: 16 Apr 2019

Phase five of the framework for margin requirements for non-centrally cleared derivatives will capture around 1,100 entities and will be implemented on September 1, 2020.

Many of these will be smaller firms, as the threshold is set to drop from €750 billion to €8 billion. Determining whether they will hit the bilateral initial margin amount of €50 million, and dealing with the volume of documentation needed by the deadline, are top concerns for panellists at the International Swaps and Derivatives Association (Isda) AGM in...