Variation Margin Tremors: The Foreshock and the "Big One"

A turning point is approaching for the global OTC swap market. Market participants worldwide have long since marked their calendars for March 1st, when regulatory regimes across the globe will implement variation margin obligations for all uncleared swaps trades. The documentation and cost necessary to meet these new requirements however is too great an obstacle for many to overcome. While in recent weeks some regulators have pushed the compliance deadline out on the calendar, the burden remains.

This TABB Group report, Variation Margin Tremors: The Foreshock and the ‘Big One’, examines the extent to which the recent variation margin expansion has effected market participants and trading volume in the days leading up to and weeks following the March 1st deadline.