Uncleared margin regulation: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) m Amwelladmin moved page Uncleared derivatives margin - EMIR Provision to Uncleared margin regulation |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
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}}. | ||