Regulators OK portfolio-based margining on some CDS at ICE

01/15/2013 | Fox Business

The Commodity Futures Trading Commission followed the Securities and Exchange Commission's precedent in allowing investors to offset some types of credit-derivatives trades within IntercontinentalExchange's clearinghouse. "For client portfolios that contain index and single-name [credit default swaps], to receive margin efficiencies, both products need to reside in the same account structure, which required harmonization on this issue between the SEC and the CFTC," said Supurna VedBrat, co-head of trading and market infrastructure at BlackRock. "This could encourage early adoption of clearing for credit."

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