BoE review estimates OTC margin requirements could hit $800bn
A financial stability review, published by the Bank of England (BoE) on October 1, estimates that the margin requirements for both centrally cleared and non-cleared over-the-counter derivatives transactions could reach $800 billion for interest rate swaps and credit default swaps.
The authors, Che Sidanius and Filip Zikes, say under ‘normal' market conditions, the current notional value of trades would require a margin of between $200 billion and $800 billion. The authors attribute the wide
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