Tag: margin

Pssst, looking to trade a swap without margin? (Reuters)

Another article looking at the new proposed margin rules from the FDIC and CFTC.  The debate here is if end-users, say Exxon, could start marketing swaps to hedgers and compete with the banks as they won’t have to comply with the new margin rules as an end-user.  I argue that as soon as they start […]

CFTC Proposal to Change Futures Margin Payments May ‘Kill’ Brokerage Model (Bloomberg)

The CFTC is thinking about extending some of its proposed margin rules for OTC derivatives clearing to the futures market. The part that matters here is if they require FCM’s to segregate margin for each client rather than pooling into one big account. If FCM’s can no longer get (and pass on to their clients) […]