Cross-border trading could suffer under IM rules

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

A discrepancy between the US and European versions of the non-cleared margin rules means asset managers could be prevented from posting cash collateral when trading with foreign counterparties.

Hundreds of buy-side firms must start posting initial margin on their non-cleared derivatives trades from later this year, with cash being the preferred option. Cash posted as collateral against non-cleared trades must be reinvested in government money-market funds (MMFs).

However, the US rules

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]