Tokenised collateral could lower barriers to tri-party VM
Existing tri-party platforms lack network effects necessary for more efficient collateral reuse
Dealers are reticent to scale up existing tri-party services for exchanging variation margin (VM) on non-cleared derivatives, though some suggest efforts to tokenise collateral could be a catalyst for more widespread adoption of tri-party arrangements.
“Buy-side clients have come in and asked for tri-party to post VM, but when we try to build that network effect on the VM side, it doesn’t get
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