Regulators are looking at how financial markets could be proofed against the collapse of a CCP – but there are more questions than answers at the moment, says the EC’s Patrick Pearson
Dealers are concerned that intra-day margin call guidelines, which they claim could drain up to $500 billion from financial markets, could make it into final CPSS/Iosco principles
Central clearing will place a huge burden on end-users, forcing CCPs to consider how best to create operational and margin efficiencies
More Credit risk articles
Dealers will be able to cross-margin interest rate swaps, and eurodollar and Treasury futures, from May
US regulations on mandatory clearing and uncleared margin could put US dealers at a competitive disadvantage in Europe, says EIB
Counterparties will have to post variation margin on uncleared trades – but questions remain over which firms will have to post and collect initial margin
The latest council draft adds a CVA capital charge exemption for sovereign derivatives transactions – potentially removing one of the big unintended consequences of CRD IV, participants say
Towards two-way CSAs
Lsoc is 'not fit for futures'
The costs of transacting swaps with one-way CSAs mean more debt offices could join Hungary, Ireland, Portugal and Sweden
Billions of dollars in capital could be excluded under Basel proposals on derivatives DVA - with US banks hardest hit
Beyond the big three
European capital rules could squash CVA feedback loop
Eurex Clearing plans to be the first OTC clearer to offer full segregation of collateral when it launches in March - demand has risen since MF Global collapse
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