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Derivatives markets brace for Basel III margin crunch in 2015 

January 6, 2015
 Elliott Holley, Banking Technology 

Derivatives market participants are concerned about the impact of new margin requirements for non-cleared derivatives under Basel III, with a large number unsure whether they will even have to comply with the rules, according to new survey by the International Swaps and Derivatives Association.

Developed by the Basel III working group on margining in cooperation with  IOSCO – the International Organisation of Securities Commissions – the new rules will require most derivatives users to post initial and variation margin on non-cleared derivatives transactions. But a third of respondents to the ISDA survey said they were unsure whether they would be subject to the rules. And of the 36% that knew they would have to comply, nearly two thirds (65%) said they were concerned or somewhat concerned about their ability to meet the requirements, which are due to take effect in December 2015.

Read More: Banking Technology 

 
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