Newsletter May 2013: Industry “harbours grave concerns”over margin rule

WASHINGTON – In a last desperate attempt to forestall imposition of initial margin requirements on non-cleared derivatives transactions, four industry lobby groups have jointly written to top global regulators expressing “grave concerns.” The margin requirements are part of the reforms of the huge, $633 trillion over-the-counter derivatives market. These reforms involve incentives to standardise and centrally clear as much of the market as possible, along with safeguards for deals that remain bespoke, including initial margin requirements.