The Bank for International Settlements' framework for margin requirements for derivatives not centrally cleared includes a one-time rehypothecation of initial margin collateral. Asset managers unfamiliar with rehypothecation are expected to face difficulty. "It's going to be a challenge for the non-hedge fund sector, for pension funds, insurance companies and those that haven't become used to putting up initial margin," said Godfried De Widts, director of European affairs at ICAP.

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