Research from ICMA found that while demand for repo increased significantly dealers’ capacity to intermediate was constrained and limited access to many firms that needed it.
Initial margin collected by phase one firms for their non-cleared derivatives totalled $173.2 billion, an increase of 10% compared to year-end 2018.
Market volatility sparked by the COVID-19 pandemic has resulted in a significant increase in prime brokers asking for more collateral from hedge funds.
Asset managers receive respite from authorities in implementing the final phase of the uncleared margin rules as coronavirus continues to impact regulation.
New working group will look to solve complications for pension funds in providing cash collateral as variation margin.
The group of 20 industry bodies have said the outbreak has resulted in a significant delay for both custodians and buy-side firms in carrying out heavy onboarding tasks
A new study found the two-way initial margin rules for non-cleared derivatives will also result in a collateral shortfall of $60 billion alone.
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
Deutsche Bundesbank and Deutsche Boerse have outlined the several advantages DLT will bring to increasing the speed and availability of collateral.
Interim CEO Todd Gibbons believes the interoperable model will help increase its global market share of the tri-party market.