EU banks seek last-minute margin reprieve for equity options
European dealers want exemption rolled over, to avoid handing US firms a regulatory advantage
Trying to win a race can be almost impossible if your car is carrying a much heavier load than other competitors. Europe’s dealers are sounding the alarm that, in under six months’ time, they will be weighed down by posting non-cleared margin on some trades, while their US competitors will be exempt.
The affected trades involve equity options, and European banks are hoping regulators will either extend an existing exemption or adopt a permanent exemption, to ensure a fair contest.
“If this
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