# Time to gear up for MVA

## Banks must be prepared for the looming rise of non-cleared margin requirements

As the world's largest banks prepare to begin posting initial margin against non-cleared trades from September – Europe's postponement notwithstanding – many are fretting about the attendant rise in the cost of funding the collateral required to back those positions. This calls for an adjustment to derivatives prices reflecting the cost of funding the initial margin on a trade, known as a margin valuation adjustment (MVA).

#### 7 days in 60 seconds

###### VM change, Libor fallback and DTCC blockchain

The week on Risk.net, November 10-16, 2017