For the many swaps not standardized and subject to clearing mandates this year, some quarters are advocating initial margins for traders, an idea receiving significant backing from Federal Reserve Vice Chairwoman Janet Yellen. "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. However, critics say the proposal could harm global OTC trade. Learn more at SIFMA's OTC Derivatives Resource Center.
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