Industry’s quick win on IM raises questions

Collateral pressure margin squeeze leverage ratio cash adobe stock AS 230x150
By Ross Lancaster
06 Apr 2020

The derivatives industry had a surprisingly quick win late on Friday when the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) authorised a one-year extension to the final phases of initial margin (IM) regulation.

On Friday, many market participants were still working under the assumption that phase five of the IM rules for non-centrally cleared derivatives would kick in this September.

The derivatives industry had previous success in pushing for a delay to the final phase of IM, which will target ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial