Japan banks will avoid US firms over margin rules
Dollar bias of US uncleared margin rules will significantly impact swap pricing, say market participants
US regulations governing margin for uncleared derivatives favour the US dollar for initial and variation margin – and Japanese banks say they will avoid US banks if the rules remain as drafted.
The margin regime for uncleared derivatives has been one of the most controversial aspects of post-crisis regulatory reform with draft rules from Europe, Japan and the US differing in both their scope and
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