Brevan Howard is first non-bank caught by margin rules, sources say

Non-cleared exposures thought to exceed $1.5 trillion

Brevan Howard will become the first non-bank to be subject to initial margin rules in their next stage beginning September 1, industry sources say. The threshold for admission? A whopping $1.5 trillion in non-cleared derivatives.

Initial margin rules have been imposed in waves since 2016. The next one, phase three, begins in September. Sources say Brevan Howard’s Master Fund, due to heavy swaps exposures, will clear the threshold for inclusion this time around – the only buy-side firm to do so