New standard CSA could be hurt by WGMR rules

030413csa

The first trades under the new standard credit support annex (CSA) were executed at the end of last year – the culmination of a two-year-plus project to revamp the document after the existing CSA became a source of valuation disputes. But a single sentence in the appendix of new proposals for the margining of uncleared derivatives could hold back adoption of the new agreement, some dealers acknowledge.

The issue centres on a mechanism designed to mitigate cross-currency settlement risk, or Herst

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: