Banks Press EU to Drop `Arbitrary' Derivatives-Collateral Rule
- Measure would cause `operational complexities,' groups say
- Intra-day requirement is part of EU-U.S. debate on clearing
This article is for subscribers only.
Banks and clearinghouses are lobbying European Union regulators to shelve a proposal setting collateral requirements during the trading day, warning that it could upend broader efforts to reach a deal with the U.S. on oversight for the global derivatives market.
The Futures Industry Association and International Swaps and Derivatives Association, two of the leading trade groups for the biggest dealers in derivatives, said in a joint letter released on Thursday that the plan for intra-day collateral requirements at clearinghouses will cause “major and disproportionate operational complexities” and is inconsistent with U.S. rules.