The Cost of Collateral for Clearing

New financial regulations including Dodd-Frank, Basel, MiFID and EMIR are increasing the cost of capital and driving the need to more accurately measure the risks and profitability of OTC derivatives. These regulations significantly increased collateral requirements for cleared trades. This webinar explores the different capital costs arising from clearing and how they compare with costs for OTC trades.

Areas Covered

  • Regulations and swap clearing
  • MVA – Margin Valuation Adjustment
  • The cost of funding initial margins (IMCA)
  • The cost and benefit of funding valuation margins
  • Funding components of XVA
  • OTC trade profitability
  • Examples of Cleared and Uncleard IR Swaps
  • Reasons OTC trading will continue
  • Converging between OTC and Clearing funding costs


  • Dmitry Pugachevsky, Director of Research, Quantifi 


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Quantifi Survey Reveals Challenges in Managing The Cost of Collateral for Clearing

Quantifi today published the results of a short survey conducted as part of its recent webinar on the Cost of Collateral for clearing.

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