EU gives one-year margin reprieve on equity options

Regulators point to possible systemic risk in margin loophole, as industry urges parity with US

EU calendar

European Union regulators have proposed giving non-cleared derivatives users a one-year exemption from posting margin on equity options, essentially keeping the bloc in alignment with US rules, but only until the end of 2020.

The EU regulators explained their decision by cautioning that the more generous margin treatment could pose dangers to the financial system. Industry sources, however, argued that the exemption should be made permanent due to US inaction on incorporating the instruments

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