US Regulators Adopt Final Rule On Margin Requirements For Non–Cleared Swaps |

Shopping Cart -

Your cart is currently empty.
Upgrade to today
for only an extra Cxx.xx

You get:

plus This issue of xxxxxxxxxxx.
plus Instant access to the latest issue of 300+ of our top selling titles.
plus Unlimited access to 26000+ back issues
plus No contract or commitment. If you decide that PocketmagsPlus is not for you, you can cancel your monthly subscription online at any time. Auto-renews at €10,99 per month, unless cancelled.
Upgrade Now for €10,99 Learn more
This website use cookies and similar technologies to improve the site and to provide customised content and advertising. By using this site, you agree to this use. To learn more, including how to change your cookie settings, please view our Cookie Policy
Pocketmags Digital Magazines
Pocketmags Digital Magazines
   You are currently viewing the Italy version of the site.
Would you like to switch to your local site?
Leggi ovunque Read anywhere
Modalità di pagamento Pocketmags Payment Types
Trusted site
A Pocketmags si ottiene
Fatturazione sicura
Ultime offerte
Web & App Reader
Loyalty Points

US Regulators Adopt Final Rule On Margin Requirements For Non–Cleared Swaps

On 22 October 2015 a group of five banking regulators (the “prudential regulators”) adopted a final rule establishing minimum margin and capital requirements for non-cleared swaps and non-cleared security-based swaps.1 The Final Rule, which does not begin phasing in until September 2016, applies to swaps executed by swap dealers, major swap participants, securitybased swap dealers and major security-based swap participants for which one of the federal agencies is the prudential regulator (each, a “covered swap entity”).2 Although most investment managers and other buy-side firms are already margining non-cleared swaps under ISDA master agreements and credit support annexes, the Final Rule imposes material obligations on swap dealers that diverge from current industry practice. This likely will require amendments to current trading documentation and result in increased costs for many market participants.

In Brief

• Dealers soon will be required to collect and post initial margin with certain swap counterparties with high levels of exposure to non-cleared swaps, and such initial margin must be segregated with a third-party custodian.

• Dealers may impose an initial margin threshold of up to $50 million, lessening the rule’s impact.

• Parties to non-cleared swaps generally will be required to exchange variation margin on a daily basis regardless of the counterparty’s non-cleared swap exposure level.

• Investment managers will be required to make certain determinations in order to establish the Final Rule’s applicability and relevant compliance dates.

• Entities managed by the same investment manager are unlikely to be considered “affiliates,” and managers therefore will be required to make entity-level determinations.

Purchase options below
Find the complete article and many more in this issue of The Hedge Fund Journal - Issue 109 - November 2015
If you own the issue, Login to read the full article now.
Single Issue - Issue 109 - November 2015
Or 12999 points
Getting free sample issues is easy, but we need to add it to an account to read, so please follow the instructions to read your free issue today.
Email Address
6 Month Digital Subscription
Only € 140,00 per issue
Or 69999 points

View Issues

About The Hedge Fund Journal

INFORMING THE HEDGE FUND COMMUNITY With access to some of the industry’s biggest names and an astute and talented group of writers and contributors, The Hedge Fund Journal has established itself as a trusted source of information on the hedge fund industry.