Singapore, HK, Australia set date for OTC margin rules

  • Business Premium
  • Wednesday, 07 Dec 2016

SINGAPORE: Singapore, Hong Kong and Australia will introduce collateral rules for over-the-counter derivatives trading on March 1, part of a global initiative to make transactions in the US$544 trillion market safer.

The new guidelines force financial institutions to post cash or bonds to their swaps counterparties. They will also apply to variation margins, which cover daily market swings, the Monetary Authority of Singapore, the Hong Kong Monetary Authority and the Australian Prudential Regulation Authority said in separate statements yesterday.

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Aeon Credit in collaboration to spearhead digitalisation platform for hawkers, petty traders Premium
Care for your employees’ health and be rewarded with better productivity Premium
China Nov factory activity unexpectedly grows as supply snags ease Premium
Coraza inks IPO underwriting agreement with M&A Securities Premium
Ringgit opens slightly higher in cautious trade Premium
Bursa Malaysia rebounds from Omicron jitters Premium
Oil pares gains, but ends higher after Friday slump Premium
Companies cautious on impact of Omicron coronavirus variant Premium
Wall Street rebounds after virus-related sell-off Premium
Volatility seen to prevail Premium

Others Also Read