The ISDA Margin Survey looks at the impact of regulatory and other changes on collateral practices, and analyzes the amount and type of initial margin (IM) and variation margin (VM) posted for non-cleared derivatives, and the IM posted for cleared transactions.
The survey finds that the 20 largest market participants (phase-one firms) collected approximately $157.9 billion of regulatory and discretionary IM for their non-cleared derivatives transactions at year-end 2018. Of this amount, $83.8 billion was collected from counterparties currently in scope of the margin regulatory requirements. A further $74.1 billion of discretionary IM was collected from counterparties and/or for transactions not currently in scope of the rules.
In addition to these amounts, phase-one firms reported they had set aside $39.4 billion of IM for their inter-affiliate derivatives transactions to meet US prudential rules at year-end 2018. Seven other market participants – four phase-two firms and three phase-three entities – provided data for the survey. The total amount of IM collected by these firms was $4.8 billion at year-end 2018.
The survey also finds that $217.9 billion in IM had been posted by all market participants to major central counterparties (CCPs) for their cleared interest rate derivatives (IRD) and credit default swap (CDS) transactions at the end of 2018.
Read the full survey by clicking on the PDF below.
Documents (1) for ISDA Margin Survey Year-End 2018
Latest
Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...
ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...