US margin proposals could lock down $2 trillion in assets

An estimated $2 trillion worth of liquid assets will have to be segregated in third-party custodial accounts under US proposals on margining for uncleared over-the-counter derivatives trades, according to one US prudential regulator. The proposals would compound the impact of other rules – on bank liquidity buffers and central clearing – which also require liquid assets to be locked away. In concert, the rules could generate a requirement for $6 trillion or more of similar assets.

The proposals