US banks fear margin rules could hit emerging Asia liquidity
Unequal margining requirements may be a turn-off for local counterparties
US banks expect onshore swaps liquidity in emerging Asian markets to be constrained from March 2 next year, as counterparties in non-netting jurisdictions will be reluctant to comply with unequal margining requirements in new derivatives rules.
The next phase of the non-cleared derivatives margin rules comes into force on March 1, requiring US, European, Japanese and Canadian banks to collect
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