Tag Archives: initial margin

Comparing Collateral Segregation Regimes for Uncleared Swap Margin

The proposed margin rules from the CFTC and the prudential regulators, when considered alongside the existing CFTC collateral segregation rules, present the potential for three different collateral segregation regimes applying to initial margin posted to a swap dealer. To compare the differences, we have created a chart of the three collateral segregation regimes.… Continue Reading

The 2nd Half Report from the CFTC Roundtable on Individual Customer Collateral Protection

The second half was all about costs – how will increase and who will pay for those increases. An hour’s worth of very good and technical discussion about the of mutualization of losses. Issues discussed were: Use of initial margin vs. increases to a guarantee fund vs. doing both Making independent seg optional vs. mandatory … Continue Reading

A Half-Time Report from The CFTC Roundtable on Individual Customer Collateral Protection

This roundtable is now on break and here is the half-time report. BUYSIDE COMMENTS: Not all clients choose tri-party control agreements, but those who do understand that there are incremental costs and are willing to pay those incremental costs. The re-tooling of the market as a result of movement from bi-lateral to cleared OTC markets … Continue Reading