Proposals published by the Council of the EU earlier this week are fuelling expectations that buy-side firms will not have to post variation margin on certain foreign exchange forwards from next year – a controversial quirk of Europe’s rules. The proposals would limit margining to interdealer trades only.
“I’m fairly confident I will not need to be margining with funds from January 3. I think that is where we are headed,” says a regulatory expert at one European bank. “If you had asked me two