Inter-affiliate trades face threat from clearing, execution, margin rules

Chain reactions

Scott Cammarn

Daisy chains are associated with childhood, sunshine and grass-stained fingers. But the use of the term during the crisis – to illustrate the way derivatives exposure bound dealers together – gave it a much darker set of associations, and it is these chains that politicians and regulators want to break up through the use of central clearing, new execution rules and bilateral margining.

Daisy chains also exist within a single banking organisation – client-facing entities will execute a trade and

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