Margin 'big bang' to catch tenfold more UK firms, FCA estimates
Risk Quantum analysis suggests around 50 firms will be captured by margin rules in total
The final phase of the initial margin requirements for non-cleared trades in 2020 will capture 5.9% of UK financial firms – an almost tenfold increase from 0.6% currently – analysis by the Financial Conduct Authority (FCA) shows.
A back-of-the-envelope calculation by Risk Quantum suggests that roughly 50 firms in total will then be subject to the rules.
Under post-crisis reforms, institutions have to post collateral against their bilateral trades, with the mandate being phased in over time
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