Australian VM relief undermined by backloading rule

Trades entered during six-month transition period will need margin from September 1

apra-foyer
Apra: there are signs the regulator has been listening to concerns

Despite a six-month transition period for implementing variation margin (VM) on non-cleared derivatives trades, Australian banks will still have to sign new legal agreements with many of their counterparties ahead of the global March 1 deadline for the new rules, which threatens to rob the market of liquidity.

"This transition period was supposed to give us relief, but if at the point in time where the relief starts you don't understand what the key economic terms of your CSAs [credit support

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

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: