Non-cleared margin rules confuse Asian private banks

Exotic OTC products for Asian high-net-worth investors could be under threat

confusion-question-shutterstock
Perplexing path: several Asian jurisdictions have yet to finalise their VM regulations

Global non-cleared margin rules for derivatives pose a major challenge for Asian private banks, compounded by the much greater use of over-the-counter products by the region's wealth managers, compared with their European and US peers.

"Asian private banks sell about 50% of their products via OTC format, which are potentially subject to the non-cleared margin rules, whereas in Europe, for example, the format is overwhelmingly structured notes and these all sit outside of the margin rules," says

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 indvidual account here: