One size fits none: Industry split over futures and OTC holding periods

Some listed derivatives have equivalents in the cleared over-the-counter market, but the two product types are subject to different margin regimes – leaving the futures under-margined, and OTC swaps over-margined, critics say. The issue divides US and European regulators. By Matt Cameron


"It's like running a bowling alley and saying you’re only going to supply size nine bowling shoes because that’s the average. You might technically be right, but it’s not going to be workable in practice,” says one clearing expert at a US bank, questioning the orthodoxy that margin for all listed futures can be calculated on the basis of a one-day holding period, while a five-day period is used for all cleared over-the-counter swaps.

The holding period is an assumption about how quickly a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Switching CCP – How and why?

As uncertainty surrounding Brexit continues and the impacts of Covid-19-driven market volatility are analysed, it is essential for banks and their end-users to understand their clearing options, and how they can achieve greater capital and cross…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here