New global swap-collateral rules will go into effect in the U.S. today, following a six-month pause prompted by international coordination and compliance difficulties, the Wall Street Journal reported today. The rules are the second phase that applies to smaller firms as part of a global regulatory effort to create a level playing field for swaps trades that aren’t routed through clearinghouses. The largest players in the market, mainly multinational banks, have been required to comply with the collateral rules since last September. Officials consider the new collateral rules to be a key part of their strategy to curb the spread of risk in derivatives markets. Regulators in Europe and the U.S. pushed back a March 1, 2017, deadline for smaller firms following a delay in completing the rules in Europe, as well as in response to concerns from firms that they wouldn’t have enough time to comply.
