Smaller firms get boost on timing for non-cleared margin

Counterparties will be able to offset extra collateral calls, says source close to EBA

Firms could extend settlement times by two days at little cost

Smaller firms could get longer to settle margin calls for non-cleared derivatives without having to post additional collateral as had been expected, says a source close to the European Banking Authority (EBA).

In final draft regulatory technical standards (RTS) published on March 9, the European supervisory authorities granted smaller users of derivatives the chance to extend settlement times for variation margin (VM). But many in the industry saw the collateral requirements for doing so as