FX forwards users drop EU banks over margin rule
Other dealers do not have to collect margin on physically settled forwards
European banks are being cut from counterparty lists for some foreign clients, a result of rules that would force the dealers to collect variation margin (VM) on currency forwards. Banks in other jurisdictions will be able to continue trading the products without margin after the rules take effect in the European Union in January next year.
“What we are doing now is taking EU banks off the bank panel for our non-EU clients unless those clients want to collateralise,” says James Wood-Collins,
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] 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.
Copyright Infopro Digital Limited. All rights reserved.
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]
Copyright Infopro Digital Limited. All rights reserved.
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]
More on Derivatives
