Banks seek escape from inter‑affiliate margin burden

Internal transactions contributing “substantial” amount of banks’ initial margin requirement

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The initial margin impact of trades between entities in the same group has caught some banks unawares

Banks caught in the first phase of the global margin regime for non-cleared derivatives say a hefty chunk of their initial margin (IM) requirements are taken up by trades between entities within the same banking group. For some dealers, the total may be as high as 25% – prompting some to consider radical action to rejig their businesses in a bid to bring the amount down.

One large international bank says up to a quarter of its total initial margin was attributable to inter-affiliate trades on

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