BAML exec fears ‘systemic risk’ if margin issue not resolved

Regulators urged to make swift decision on exempting small end-users

Margin thresholds

Failure to exempt nearly 1,000 end-users from posting and receiving initial margin from 2020 could introduce unnecessary systemic risk into the over-the-counter derivatives market, according to a senior executive at Bank of America Merrill Lynch.

“[This issue is] another systemic risk that could be caused by the onerous implementation and cost [of the rules],” said Tomo Kodama, a managing director in counterparty portfolio management at BAML, speaking at an event hosted by the International Swa

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