ISDA: Use of RMB-denominated Chinese Government Bonds as Margin for Derivatives Transactions

A large number of financial institutions in Asia-Pacific are expected to be brought into scope of phases five and six of the initial margin (IM) requirements for non-cleared derivatives in September 2021 and September 2022. As part of their preparations, market participants will need to know which high-quality liquid assets they can post as IM and understand any regulatory or legal impediments that may affect their choice.

To help with that analysis, the China Central Depository & Clearing Co., Ltd. and ISDA have developed a whitepaper that analyzes the issues relating to use of Chinese government bonds as initial margin.

The full paper is available at https://www.isda.org/a/4XATE/Use-of-RMB-Chinese-Government-Bonds-as-Margin-for-Derivatives-Transactions.pdf

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