End-users say non-cleared margin rules will hit hedging

New regime will "make the world safe for banks, but not safe from banks"

BIS headquarters, home of the Basel Committee

Bilateral margin rules for non-cleared over-the-counter derivatives are designed “to make the world safe for banks, but not safe from banks," according to Bruce Fox, the head of derivatives at US insurer Genworth Financial.

During a panel discussion at Risk's OTC Derivatives Clearing Summit in New York, Fox said the new rules – which have been agreed internationally and are being transposed into national regulations – will compel all market participants to post more collateral than in the past,

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