Industry sources have largely welcomed proposals by the Commodity Futures Trading Commission to allow a wider array of US government money market funds (MMFs) to be used as initial margin for non-cleared derivatives, but some warn the plans will introduce extra risk into the system.
While shares in MMFs that utilise the short-term repo market are deemed eligible collateral for initial margin on cleared derivatives, US regulators have banned its use for non-cleared derivatives positions. After
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.