Proposed stress protocol for collateral stirs debate
Isda Future Leaders recommendation seen as useful thought exercise, but difficult to implement
Complex problems often require novel thinking, yet a recent proposal for an industry-wide emergency collateral framework may have pushed creativity a step too far.
In its whitepaper on collateral liquidity efficiency in the derivatives market, the International Swaps and Derivatives Association’s Future Leaders in Derivatives (IFLD) group made 16 recommendations. Among them, a proposed stress event
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