Global regulators exempt FX forwards, swaps from margin rules

The Basel Committee on Banking Supervision and the International Organisation of Securities Commissions have decided to exempt foreign exchange trading from margin rules for over-the-counter derivatives. The industry, which has argued that forex should be treated differently from derivatives and equities, welcomes the decision. "Exempting FX forwards and swaps from a mandatory [initial-margin] regime will ensure corporates and investors continue to benefit from a well-functioning and cost-effective FX market," said James Kemp of GFMA.

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