Derivatives sector unlikely to settle for global authorities’ relief on margin requirements

26 July 2019 9:10pm
Derivatives market participants are unlikely to be satisfied with global authorities’ one-year extension on the application of uncleared-swap margin requirements to small firms, based on industry’s previous assertions.

But it’s uncertain whether the firms will find a continuing advocate in the US Commodity Futures Trading Commission, as former Chairman J. Christopher Giancarlo passed the baton this month to Heath Tarbert.

Banking groups have been beating the drum for the last year for the requirements to apply to fewer firms, contending that many pose no systemic threat yet will face documentation, custodial and operational requirements.