ISDA Margin Survey 2014

Executive Summary

1. Estimated total collateral in circulation related to non-cleared OTC derivatives has decreased 14%, from $3.7 trillion at the end of 2012 to $3.2 trillion at the end of 2013 as a consequence of mandatory clearing.

2. The use of cash and government securities continues to account for roughly 90% of non-cleared OTC derivatives collateral, as has been the case in prior years. Cash received as a percentage of total collateral has decreased versus 2013, while cash delivered has remained relatively stable.

3. The number of collateral agreements (those with exposure and/or collateral balances) supporting non-cleared OTC derivatives transactions totalled 133,155 agreements at the end of 2013. Roughly 87% are ISDA agreements.

4. Eighty-seven percent of non-cleared OTC derivatives collateral agreements relate to portfolios of less than 100 trades. Only 0.3% involve portfolios of more than 5,000 trades as of December 31, 2013.

5. The use of collateral agreements is substantial. Among all firms responding to the survey, 91% of all OTC derivatives trades (cleared and non-cleared) were subject to a collateral agreements at the end of 2013.

6. Responding firms also indicated that 90% of non-cleared OTC derivatives trades were subject to collateral agreements at the end of 2013, marking a 20% increase versus the previous year.

7. On an asset class basis, 97% and 86% of bilateral transactions involving credit and fixed income derivatives respectively are performed under a credit support annex (CSA) or collateral agreement.

8. Portfolio reconciliation frequency has increased for larger-sized portfolios, with daily reconciliation increasing 5% for portfolios consisting of 100 to 499 trades at the end of 2013 compared to the end of 2012. Eighty-four percent of large firms surveyed indicated they reconcile their portfolio mix on a daily basis.

 

Documents (1) for ISDA Margin Survey 2014

Strengthening DC Governance

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The ISDA CSA Notification of Significant Error or Omissions Suggested Operational Practices (SOP) considers current institutional processes and outlines suggested operational practices related to the new requirement under §26.3(2) of the Canadian Trade Repositories and Derivatives Data Reporting rules rewrite...

ISDA Paper on UPI Identifiers

On July 16, ISDA submitted a paper (UPI as the Foundation for OTC Derivatives Reporting: The Case for UPI) to the UK Financial Conduct Authority (FCA). The paper was developed to complement ISDA’s response to the FCA’s discussion paper DP24/2:...

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