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Firms wary of March 1 margin deadline
01 March 2017
Firms have had to re-paper their agreements with counterparties and invest in their operations to handle daily margin calls
Wednesday March 1 saw the introduction of rules that require
all firms holding swaps to start exchanging with their
counterparties variation margin.
National regulators have been moving individually over
recent months and weeks to offer reassurance they will be
lenient in their treatment of non-compliant firms so the impact
on some firms may be deferred.
Yet the feeling on the eve of the deadline is the industry
has once again fallen well short of its mark and many firms are
at this stage far from ready to process variation margin on a
Phil McCabe, head of collateral management at Bloomberg,
told FOW: "I don’t think anyone feels that most
people will be ready. Estimates vary between 10% and 30% of the
market being ready but I suspect the real number is at the low
end of that scale."
David White, the head of sales for triResolve, part
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