Spectre of mass swap unwinds looms ahead of VM deadline

Terminating swaps — Some dealers fear they may have to unwind many non-cleared swaps in order to remain compliant with new regulations

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

A number of banks fear they will be forced to unwind “thousands and thousands” of non-cleared swaps if counterparties do not repaper their collateral documentation by the end of September, leading to market disruption and confusion around pricing. Some dealers may even stop trading with non-compliant counterparties well before September to reduce this risk.

Dealers were required either to sign collateral agreements – known as credit support annexes (CSAs) – with clients for the first time, or

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 [email protected].net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]