Japanese financial firms need a change in the nation’s netting law before they can finalise plans for posting initial margin on cross-border derivatives trades. While time is running out for up to 40 firms to conclude IM arrangements well ahead of the September 2020 deadline, the rule change might only come by the end of this year.
As part of the IM preparation, firms will have sign up with custodians for cross-border trades, but to do that they need the law to allow margin to be netted
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