New margining rules for non-cleared derivatives are significantly changing collateral practices, according to the International Swaps and Derivatives Association (ISDA).
In its recently relaunched margin survey, ISDA also highlighted the role that the rapid increase in centrally cleared derivatives in recent years is also a significant factor in moulding the collateral landscape.
The new margin requirements for non-cleared derivatives went live in September 2016.
ISDA’s survey found that approximately $1.41 trillion of collateral has been posted with central counterparties (CCPs) or with the 20 largest market participants for their non-cleared derivatives trades.
Of this amount, initial margin (IM) and variation margin (VM) posted for cleared derivatives totalled $434 billion, and for non-cleared derivatives totals $977.5 billion.
IM posted totalled $280.5 billion, made up of $173.4 billion for cleared and $107.1 billion for non-cleared.
Phase-one firms delivered $63.6 billion of IM in total and received $107.1 billion of IM for their non-cleared derivatives transactions.
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