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Equity derivatives now biggest consumer of initial margin

Fragmented product set is 1.3% of OTC notional but attracts more margin than rates and forex

Small change but a heavy burden
“If you look at rates and forex separately, then equity is the largest” – AcadiaSoft's Mark Demo

Equity derivatives are said to have become the over-the-counter market’s largest consumer of initial margin (IM), despite representing just 1.3% of the market by total notional. The growing burden could prompt banks to turn some trades away, dealers warn, and two rival services – Quantile Technologies and TriOptima – are now vying to help the industry cut its costs.

Margining rules for non

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