Derivatives, Margining and Risk in Emerging Market and Developing Economies

Derivatives have an important role to play in the development of economies and financial markets in emerging jurisdictions. Financial regulation, in turn, is a critical element in shaping the safe, efficient use and growth of risk management activity in these countries. One of the most important elements of the financial regulatory framework for derivatives is margining: the exchange of collateral, or margin, for derivatives transactions. This paper explains what margining is, how it works and the key issues for policymakers in emerging market and developing economies (EMDEs) to consider when transposing margin-related regulation to their jurisdictions, with a particular focus on non-cleared derivatives.

Click on the attached PDF to read the full report.

Documents (1) for Derivatives, Margining and Risk in Emerging Market and Developing Economies

Response on Commodity Derivatives Markets

On April 22, ISDA and FIA submitted a joint response to the European Commission’s (EC) consultation on the functioning of commodity derivatives markets and certain aspects relating to spot energy markets. In addition to questions on position management, reporting and...

Episode 50: The Value of Derivatives

A new report from ISDA shows that companies all over the world use derivatives to alleviate uncertainty, transfer risk and enhance profitability. ISDA discusses the findings with Boston Consulting Group’s Roy Choudhury. Please view this page via Chrome to access...