Newsletter January 2013: Regulators may modify OTC margin proposals

SAN DIEGO, CALIFORNIA – International regulators may be prepared to modify proposals requiring banks and others dealing in the uncleared over-the-counter derivative market, US Federal Reserve vice chairwoman Janet Yellen has hinted. Plans for an increasing proportion of over-the-counter (OTC) contracts to be cleared through central counterparties are moving ahead around the world. But proposed requirements for the large sector of customised and illiquid business that cannot be cleared remains highly contentious (see story on left).