First day of OTC derivatives initial margin rules sees frozen markets, custody bottlenecks
The OTC markets were hit on Thursday by the introduction of new BCBS/IOSCO margin and account segregation rules in selected jurisdictions. This had the impact in some countries of shutting the market down entirely. In others, banks just weren’t ready, and partly due to a lack of custody services. This will get sorted out in time but on Thursday it was a bit of a mess.