One-year countdown begins on mandatory margining

摘要

The one-year countdown on the biggest upheaval in how over-the-counter derivatives portfolios are valued is now underway. However, market participants believe it will not be enough time to implement necessary changes as counterparties begin exchanging initial and variation margin on swaps contracts that cannot be centrally cleared. "What is yet to come is a far greater change than we've seen in the capital markets in the last 30 years. I don't think that eyes are wide open and seeing this coming across all financial institutions," said Nick Chaudhry, head of OTC client clearing at Commerzbank.