Banks may be forced to cancel client trades executed after 1 March if their collateral agreements had not been re-negotiated.
Tag: variation margin
Derivatives trading bodies are pushing for US agencies to ease rules on how client cash margin held by banks is calculated as part of their capital exposures.
EU regulator confirms the 1 March deadline for variation margin rule is still in place, despite the US being given a six-month relief period.
The delay will help ease fears among buy-side firms, many which were reportedly nowhere near ready to comply with the 1 March go-live.
Variation margin rules come into effect on 1 March and several industry associations have called for a ‘transitional period’ to ensure compliance.
Asset managers have barely completed the re-write of collateral exchange agreements for the incoming variation margin rules.
Variation margin requirements come into force in March and Societe Generale has downplayed its potential impact.
Delays to variation margin rules could lead to greater cross-border fragmentation.