CFTC relief caps day of swaps margin mayhem

Banks unable to face up to 50% of counterparties due to custodian bottlenecks

Trading confusion
State of confusion: large dealers were unable to trade with their full range of counterparties

US regulators have shelved a key requirement of the swaps market's new margining regime less than a day into the mandate. It was the culmination of an at-times chaotic day of trading, in which some banks had access to only half of their dealer counterparties – the result of a documentation and operational backlog that started to clear as the day wore on.

As US markets closed yesterday, the Commodity Futures Trading Commission (CFTC) announced it would temporarily lift its requirement that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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 individual account here