Netting questions linger in Asia margining rules

Hong Kong set to exempt non-netting trades from margin regime, following Australian position

Margin protection: less reliable in some Asian markets

Answers are starting to trickle in for one of the conundrums of the derivatives market's new margining regime: how to deal with jurisdictions where the practice of holding margin against counterparty exposure may not work. Asia has a high concentration of these jurisdictions, including the biggest of the lot – China. 

On October 4, the European Commission put forward a set of rules with a limited exemption for these trades, while Australia included a complete exemption in its final rules on Octo

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