Asian buy side faces non-cleared margin currency penalty

Global banks charge premium for accepting local securities instead of major currencies

thai-baht_Getty-web.jpg
Out of the money? Asia-based market participants question whether margin rules penalise firms in the region

Like much of the post-crisis regulatory framework, margin requirements for non-cleared derivatives were intended to respond directly to the counterparty risks that appeared in Western bilateral swaps markets in 2008, but they have been adopted by many major Asian jurisdictions as well. Local market participants could be forgiven for questioning whether the rules are entirely appropriate for them, since they now face the prospect of paying a penalty simply for being based in Asia.

Global banks

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: