On October 22, 2015, the prudential banking regulators (which includes the OCC, FDIC and the Federal Reserve Board) approved the final version of the non-cleared swap margin rule (available here). We will be considering many aspects of this rule in a series of postings, but in this posting we focus on a single discrete issue:
Whether a money market mutual fund (“MMF”) constitutes eligible collateral that can be posted in respect of a non-cleared swap.
The answer, of course, is it depends. In sum, a MMF will constitute eligible collateral, as long as the following conditions are met:
Continue Reading Margin on Non-Cleared Swaps – Are Money Market Funds Eligible Collateral?