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Articles tagged by margin rules

MAS Postpones Non-Cleared Margin Rule The Monetary Authority of Singapore (MAS) has postponed the implementation of rules surrounding margin requirements for non-centrally cleared derivatives. The rules were due to be invoked on September 1, however in a letter to market participants, MAS says it has been ...
Giancarlo Slams Regulators as US Implements Margin Rules New margin rules for uncleared swaps come into force in the US, Canada and Japan today, and CFTC commissioner Christopher Giancarlo is, for one, very unhappy about it.
ISDA Live with SIMM The International Swaps and Derivatives Association (ISDA) last week announced the live launch of the ISDA Standard Initial Margin Model (SIMM), an industry standard methodology that it says is being widely adopted by market participants to calculate initial margin for non-cleared derivatives trades. The launch comes as the US granted a last minute reprieve from the non-cleared margin rules in the face of opposition from market participants and announcements from four major centres that they were delaying enforcement of the rules
NFA Raises Margin Levels on Sterling FX Trades In a move that might be seen as a little late, the National Futures Association (NFA) has instructed FX brokers to raise their margin requirements for clients trading sterling. Under NFA rules the 10 most traded currencies have be subject to a 2% margin on the notional value of outstanding contracts, while currencies outside of that group have had a 5% requirement. Noting that its rules allow the NFA to change margin requirements “under extraordinary market conditions”, the regulator says, “Given the recent events involving the UK exiting the European Union (Brexit) the executive committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs [forex dealer members] under Section 12 for currency pairs involving the British pound to a minimum of 5%. This increase is effective as of 5 p.m. (CST) on November 7, 2016 and remains in effect until further notice.”
FX Regulation: What Traders Need to Know As 2016 comes to a close the regulatory agenda shows no signs of slowing. While the FX market itself has largely not been directly addressed by new regulations, it has been swept up in many of the broader OTC market reforms. March 1 will mark the implementation of the variation margin requirements for non-cleared derivatives, meaning that thousands of counterparties – including asset managers, pension funds, insurance companies and hedge funds – will need to change their existing collateral support agreements, or set up new ones, before this date.