Eurex urges more regulators to endorse VM capital savings

CME, Ice and LCH treat variation margin as settlement; Eurex awaits further guidance

deutsche-borse-headquarters-eschborn
Deutsche Borse-owned Eurex would like further guidance from European supervisory authorities

Eurex Clearing has urged European supervisors to provide clarity on whether variation margin (VM) can be treated as settlement of a cleared swap. Currently, only Credit Suisse and UBS are known to employ the practice as a way of cutting capital requirements on cleared portfolios, with the backing of the Swiss regulator.

Last month, US regulators also gave what banks believe is a green light to begin treating VM as settlement.

“So far, no similar guidance has been provided by European

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: