ISDA Margin Survey Shows Implications of Continued Shift to Central Clearing

ISDA's latest annual Margin Survey showed "a small decline in the total amount of collateral supporting non-cleared derivatives transactions in 2014, in part due to a continued shift to central clearing." ISDA stated that this shift has resulted in: (i) a significant increase of collateral supporting cleared transactions and (ii) a sharp growth in the number of client cleared collateral agreements, "as an increasing number of end users began clearing in response to regulatory changes."

ISDA stated that its annual Margin Survey provides information about the use of collateral in the over-the-counter derivatives business. This year, ISDA emphasized that it specifically focused on the collateralization of cleared derivatives, in addition to coverage of the bilateral derivatives market. The data used in the 2015 Margin Survey was sampled as of December 31, 2014.

See: ISDA Margin Survey 2015.Related news: SIFMA AMG Responds to ESA Regarding Margin Requirements for Non-Centrally Cleared Derivatives (July 10, 2015); ISDA Announces SIMM Licensing Program for Non-Cleared Derivatives (June 2, 2015); ISDA and FIA Europe Publish European Cleared Derivatives Execution Agreement (May 19, 2014).