Uncleared margin regulation: Difference between revisions
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{{a|emir|}}Fonly known as “[[UMR]]”, or “[[SIMM]]”, or [[Reg Margin]], among other cloying appellations, margin requirements for uncleared derivatives aim to reduce counterparty credit risk and encourage clearing of derivatives through price incentives. | {{a|emir|}}Fonly known as “[[UMR]]”, or “[[SIMM]]”, or [[Reg Margin]], among other cloying appellations, margin requirements for uncleared derivatives aim to reduce counterparty credit risk and encourage clearing of derivatives through price incentives. | ||
The new rules require the bilateral exchange of | The new rules require the bilateral exchange of [[initial margin]] ([[IM]]) and [[variation margin]] ([[VM]]), and apply to financial firms and systemically important non-financial entities. EMIR appears to apply to all non-EU non-financial entities, whereas EU corporates are only within scope if they exceed the EMIR clearing threshold. | ||
Latest revision as of 13:30, 14 August 2024
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Fonly known as “UMR”, or “SIMM”, or Reg Margin, among other cloying appellations, margin requirements for uncleared derivatives aim to reduce counterparty credit risk and encourage clearing of derivatives through price incentives.
The new rules require the bilateral exchange of initial margin (IM) and variation margin (VM), and apply to financial firms and systemically important non-financial entities. EMIR appears to apply to all non-EU non-financial entities, whereas EU corporates are only within scope if they exceed the EMIR clearing threshold.