Global banks support 5% threshold for margining uncleared swaps

A lack of netting statutes and low volumes make requirements excessive for emerging markets

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Crédit Agricole COO: 5% total notional threshold proposal is a "clever" idea

The proposal to exempt transactions for up to 5% of an entity's over-the-counter derivatives portfolio in non-netting jurisdictions from the European Union's proposed regime for margining uncleared swaps is a "clever idea" that would be welcomed by global banks, according to one senior Hong Kong-based dealer.

On July 10 the International Swaps and Derivatives Association published its response to European supervisors' consultation for proposed uncleared margin standards, in which the industry

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