ISDA Margin Survey 2013

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7. CLEARING
This year, the Survey asked respondents to report further information in relation to central clearing. The role of
central counterparties (“CCPs”) in clearing trades and in managing collateral is of growing importance and, as
new regulation is implemented, future surveys will report key statistics on the proportion of collateral pledged
for cleared swaps, the level of firms engaged in margining of cleared OTC transactions and the number of clearing
agreements in place.
Firms were asked to detail their readiness to comply with the clearing mandates under Dodd-Frank and EMIR. All
respondents from large firms stated that they would be 100 percent ready to comply with both Dodd-Frank and
EMIR clearing mandates, falling to around 70 percent readiness for small firms.
Firms were also asked if they anticipated using multiple CCPs or just a single CCP. Approximately 88 percent of
firms indicated that they expect to deal through multiple CCPs. Only 12 percent of firms indicated that they
anticipated using a single CCP, probably because these are more domestically focused firms.
The 2013 survey asked dealer respondents to report information regarding the initial and variation margin levels
they had as both where they were directly executing a trade and where they were acting as a derivatives clearing
member for a customer. When directly executing a trade, firms execute and clear OTC derivatives on their own
behalf and have membership in a clearing house (otherwise known as house clearing). When executing a trade as
a derivatives clearing member refers to where a firm will clear OTC derivatives on behalf of a third party or client
(otherwise known as client clearing).
Table 7.1a: Collateral Outstanding with a Central Counterparty
Collateral outstanding with a central counterparty: dealers executing directly (house clearing)
USD millions
CFTC Compliant DCOs
Collateral Received
Collateral Delivered
Cash Securities Subtotal Cash Securities Subtotal
Initial Margin N/A N/A N/A 20,405 10,101 30,506
Variation Margin 32,728 3,504 36,232 39,187 1,426 40,613
Other DCOs
Initial Margin N/A N/A N/A 1,497 4,847 6,344
Variation Margin 31,123 0 31,123 8,135 0 8,135
Totals
Initial Margin N/A N/A N/A 21,902 14,948 36,850
Variation Margin 63,851 3,504 67,355 47,322 1,426 48,748
Total 67,355 85,598
ISDA Margin Survey 2013 June 2013