EU set to exempt FX swaps and forwards from initial margin requirements
€6.9 trillion of FX instruments to be exempt from initial margin
European supervisory authorities have exempted uncleared FX swaps and forwards from initial margin requirements, following in the footsteps of the Basel Committee on Banking Supervision, in a move that may increase the popularity of the FX market in comparison to other asset classes.
The consultation paper states that users of the €6.9 trillion FX swaps and forwards market will only have to post variation margin on these trades, rather than putting up hefty initial margins as well, leaving these
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