Variation margin
WHAT IS THIS? Variation margin is a payment – typically made daily, in cash – to reflect changes in the market value of a trade, or portfolio of trades. In over-the-counter derivatives markets, variation margin is traditionally seen as a buffer against counterparty default; in listed derivatives, it is treated as settlement.
Docs shock: how dealers are tackling the VM deadline
Scale and complexity of negotiations raise fears many will be unable to trade from March
Isda Amend faces rival in CSA repapering effort
AcadiaSoft to launch new tool in January, but protocol approach attracts wider criticism
US banks fear margin rules could hit emerging Asia liquidity
Unequal margining requirements may be a turn-off for local counterparties
VM regime threatens explosion of small margin calls
Transfer threshold designed to avoid small payments is unworkable, critics claim
Regulators deaf to variation margin concerns, say dealers
Banks told they cannot lobby on behalf of clients over looming variation margin rules
O’Malia: renegotiate VM docs now to avoid March mayhem
Risk USA: variation margin deadline much tougher than September 1, Isda chief warns
Huge Brexit margin calls stoke intra-day funding fears
Calls on June 24 may have topped $40 billion; critics urge regulators to review episode
LCH to revise margining after Brexit backlash
Excess intra-day margin will offset other collateral calls from November 3
LCH under scrutiny after outsized Brexit margin calls
Intra-day calls criticised by banks; FIA working group pushing for change
Netting questions linger in Asia margining rules
Hong Kong set to exempt non-netting trades from margin regime, following Australian position
Eight months needed for smooth Asia variation margin roll-out
The alternative is an unprecedented repapering exercise, writes Isda's Scott O'Malia
CFTC ‘puzzled’ by CPMI-Iosco plan on margin procyclicality
Prescriptive models could increase systemic risk at CCPs, market participants warn
Final EU non-cleared margin rules softened for pension funds
No margin concentration limits for pension funds, but intragroup rules threaten US equivalence
Non-cleared margin transfer rules vex asset managers
Market split on whether MTA applies at the client or account level
EU non-cleared margin regime set to take effect in January 2017
EC expected to publish its final non-cleared margin rules on October 4
New margin timing rules may pose problems for buy side
Dealers warn clients could struggle to meet incoming T+1 deadline for variation margin
Non-cleared margin rules unsettle Asian booking hubs
European banks reluctant to rely on complicated exemptions for inter-affiliate trades
CFTC split as it endorses Japanese margin rules
Substituted compliance ruling means parties will not face worst-of-both-worlds regulation
CFTC relief caps day of swaps margin mayhem
Banks unable to face up to 50% of counterparties due to custodian bottlenecks
Banks prepare for bumpy ride as margin deadline looms
Banks and funds may have limited set of counterparties on September 1
CVA models may miss half of true default risk
Benefits of initial margin also overstated, new research finds
BoE researchers outline risk of collateral collapse
In stress periods, collateral chains could break, paper warns
EU non-cleared margin rules tipped for February
Regime likely to begin earlier than mid-2017, say regulatory sources
US regulators favour September margin deadline
September 1 roll-out would threaten bilateral swap trading chasm between EU and US