Regulators deaf to variation margin concerns, say dealers

Banks told they cannot lobby on behalf of clients over looming variation margin rules

Pleas ignored: regulators were said to be reluctant to unpick the rules

US regulators are ignoring pleas to ease variation margin settlement rules ahead of a looming March deadline, dealers claim. If the rules remain unchanged, they say many buy-side firms will face a stark choice between violating them or not trading non-cleared derivatives when the new regime goes live.

Under the forthcoming variation margin framework, most derivatives end-users will be required to post variation margin on new trades. That variation margin must be posted to counterparties the day