'Systemic risk' created by margining into non-netting jurisdictions, says StanChart

Local regulators are considering exempting banks from posting margin where there is no netting certainty

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Singapore: yet to release margin rules for non-cleared swaps

Dealers in Asia are concerned about the systemic risk created by the margin framework for non-cleared swaps in the case of cross-border trades where a non-netting friendly jurisdiction is involved.

The margin rules from the Basel Committee on Banking Supervision will be introduced in two stages. The biggest participants – those with aggregate month-end average notional amounts of non-centrally cleared derivatives that exceed €3 trillion ($3.4 trillion) – will have to exchange variation margin

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