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
Latest
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Guidance for EU IM Model Application for ISDA SIMM®
ISDA SIMM v2.7+2412 goes into effect on July 12, 2025, triggering the initial application requirement for its continued use by all financial and non-financial EU counterparties exchanging IM calculated using ISDA SIMM®. ISDA is providing guidance to ISDA SIMM users to promote...
Get Ready to Submit EU ISDA SIMM Applications
Last week marked an important milestone for the ISDA Standard Initial Margin Model (ISDA SIMM), as we published the first recalibration under the new semiannual cycle. Agreed in coordination with global regulators, this shift will ensure the ISDA SIMM continues...
SwapsInfo First Quarter of 2025
Interest rate derivatives (IRD) trading activity increased in the first quarter of 2025, driven by elevated interest rate volatility, shifting central bank policy expectations and evolving inflation and growth outlooks. Trading in index credit derivatives also rose, as market participants...