trending Market Intelligence /marketintelligence/en/news-insights/trending/EO7uYR2kG2RHJszc8hL5Bg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Regulators update guidance on derivative contracts' capital treatment

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Regulators update guidance on derivative contracts' capital treatment

Three federal regulators notified national banks and federal savings associations of guidance on the capital treatment of certain derivative contracts, following modifications in central counterparties' rulebooks.

Central counterparties have treated variation margins — used to cover risk exposure in centrally cleared derivative contracts and their netting sets — as collateral, with the title to the collateral kept by the posting party (collateralized-to-market). Now, variation margins may be considered settlement payment, with the title to the payment transferred to the receiving party (settled-to-market).

Consequently, the Federal Reserve, Federal Deposit Insurance Corp., and Office of the Comptroller of the Currency have determined that, for capital rule purposes:

* In a derivative contract where the outstanding exposure is settled and the terms reset on certain dates so that the contract's fair value is zero, the remaining maturity equals the time until the next reset date; and

* If a bank — having determined that a variation margin may legally be considered settlement — decides that the payment settles outstanding exposure and the terms reset so the contract's fair value is zero, then the remaining maturity on the contract equals the time until its next exchange of variation margin.