Federal Reserve Board Vice Chair Janet Yellen says she supports a proposal to require traders to post initial margins on many swaps that would not be standardized and subject to clearing mandates this year. "A more robust and consistent margin regime for non-centrally cleared derivatives will not only reduce systemic risk, but will also diminish the incentive to tinker with contract language as a way to evade clearing requirements," Yellen said at an industry event. However, critics say the proposal could harm global over-the-counter trade.

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