One size fits none: Industry split over futures and OTC holding periods

One size fits none


"It's like running a bowling alley and saying you’re only going to supply size nine bowling shoes because that’s the average. You might technically be right, but it’s not going to be workable in practice,” says one clearing expert at a US bank, questioning the orthodoxy that margin for all listed futures can be calculated on the basis of a one-day holding period, while a five-day period is used for all cleared over-the-counter swaps. The holding period is an assumption