Uncleared margin regulation: Difference between revisions
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Amwelladmin (talk | contribs) m Amwelladmin moved page Uncleared derivatives margin - EMIR Provision to Uncleared margin regulation |
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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 {{tag|initial margin}} ([[IM]]) and {{tag|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 {{emirprov|clearing threshold}}. | The new rules require the bilateral exchange of {{tag|initial margin}} ([[IM]]) and {{tag|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 {{emirprov|clearing threshold}}. | ||
Revision as of 09:17, 30 August 2022
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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.