Cross-border trading could suffer under IM rules

Conflicting US and EU cash reinvestment rules may force buy side to post bonds

EU US currency

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

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

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: