Dealers rail at 'absurd' EU margin rules

Draft rules would force EU banks to collect margin from non-EU corporates

photo of the european banking authority headquarters
European Banking Authority headquarters

European banks have reacted with dismay after regulators confirmed they would be expected to collect margin from non-EU corporates when executing uncleared trades – a requirement that does not apply to their rivals, and would also not affect trades with European corporates. Critics argue the draft rules – which are the EU version of internationally agreed standards on compulsory bilateral margining - will result in third-country corporates shunning European banks. "It is absurd an