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Derivatives Traders Turn to Cross-Margining to Mitigate Rising Costs
Derivatives Traders Turn to Cross-Margining to Mitigate Rising Costs
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BTCCSquare news:
Derivatives traders are aggressively pursuing cross-margining strategies to offset escalating funding costs, as central counterparties (CCPs) enhance their collateral management frameworks. A Crisil Coalition Greenwich study reveals 94% of market participants see margin savings potential between USD swaps and futures through cross-margining.
"Integrating margin-heavy products into cross-margining systems doesn't just cut costs—it may shrink overall margin requirements," notes Stephen Bruel, Market Structure & Technology analyst at Crisil. The CCP basis—price disparities between identical swaps cleared at different CCPs—further complicates cost dynamics, with collateral variations playing a decisive role.
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