Netting questions linger in Asia margining rules

Hong Kong set to exempt non-netting trades from margin regime, following Australian position

asian-parasols
Margin protection: less reliable in some Asian markets

Answers are starting to trickle in for one of the conundrums of the derivatives market's new margining regime: how to deal with jurisdictions where the practice of holding margin against counterparty exposure may not work. Asia has a high concentration of these jurisdictions, including the biggest of the lot – China. 

On October 4, the European Commission put forward a set of rules with a limited exemption for these trades, while Australia included a complete exemption in its final rules on

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: