Dealers crack down on clients with dual netting sets

Pricing adjustments for posting non-cash collateral can run to 100bp

Split in two
Some firms' portfolios have been split into two netting sets, each with its own CSA

Some dealers are refusing to trade with clients that opted to sign new collateral agreements to comply with the non-cleared margin rules rather than amending existing ones.

The problem affects end-users that kept their old credit support annexes (CSAs) for legacy positions and signed new agreements to cover trades executed after the March 1 deadline to begin exchanging variation margin.

Those firms saw their portfolios split into two netting sets, each governed by a single CSA. Some banks are