Banks warn clients of possible unwinds as VM deadline nears
Clients on old CSAs told they face unwinds and trading bans unless repapering talks underway
Banks have started warning clients that they may have to terminate non-cleared derivatives trades that are not covered by updated collateral agreements, as the deadline for compliance with the US margin rules nears. Some banks have stopped trading with clients on old documentation, while others have inserted new clauses allowing them to terminate for compliance reasons.
The new variation requirements for non-cleared swaps required dealers either to sign collateral agreements – known as credit
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