European regulators today proposed a clearing carve-out for covered bond derivatives, so long as six conditions are satisfied - potentially ending issuers' long-running fears that they would be required to clear their trades. The covered bond industry had agued it would be difficult or impossible to make initial and variation margin payments if it was caught by the clearing regime.
The six conditions mirror those set out in draft margining rules for non-cleared trades in April, so are not a huge
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- Industry hails potential US relaxation of margin timing rules