IBM: Margin Calling—Is Your VaR Methodology Ready For Initial Margin On Uncleared Derivatives?

In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives. The revised “near-final” draft of requirements would be phased in from 2015 to 2019, impacting the largest entities first, with the threshold decreasing each year to include smaller entities. This document explores the industry concerns which led to tempering the proposed global standards, the expected impact on similar proposals within