ISDA deems initial margin requirements harmful

The International Swaps and Derivatives Association (ISDA) said it has found initial margin (IM) requirements for non-centrally cleared OTC derivatives could harm the financial systems they are designed to protect, writes Jonathan Watkins.

ISDA conducted an analysis into the requirements under current regulatory proposals, with the outcome highlighting significant industry concerns.

Robert Pickel, ISDA CEO, said: “The irony here is that the margin rules in current form would increase systemic risk.”

ISDA described the analysis as addressing two of the most important matters facing global regulators and the industry today, in margin requirements and...

The rest of this article is for subscribers only. Would you like to take a free trial?

Free trial

  • News & Analysis access
  • Extensive data searches
  • Access to archive
  • Weekly newsletter