The closer you look at the new rules governing over-the-counter derivatives, the more blurry and uncertain they appear. Put them alongside new Basel III regulations, and they become hazier still.
Take client clearing, for instance. Central counterparties (CCPs) usually ask for initial margin to be met with cash and sovereign bonds, but insist on cash only for variation margin. The problem is buy-side end-users claim they don’t hold enough eligible assets to meet these requirements. There are var