Asset managers, hedge funds and other participants in the over-the-counter derivatives markets held $90 billion in collateral at U.S. clearing firms in April, a +40% increase over two years and a new record, according to FIA’s FCM Tracker. The rise in the amount of collateral indicates that market participants are clearing more of their OTC derivatives, a key goal of the post-crisis financial reforms.
"Swap clearing has been steadily rising over the last four years as more market participants have recognized the risk-reducing benefits of central clearing," said Will Acworth, senior vice president for publications, data and research. "The fact that more than $90 billion in collateral is now held as margin on cleared swaps means that the OTC derivatives markets are better positioned to handle a default than they were in 2008."
The FIA FCM Tracker is based on data published monthly by the Commodity Futures Trading Commission and shows trends in the amount of collateral posted for cleared swaps since January 2014. The FCM Tracker also shows trends in the amount of collateral posted for futures and options and the number of clearing firms offering this service.