Initial margin (IM) and variation margin (VM) collected by leading derivatives market participants for their non-cleared derivatives exposures reached $1.5 trillion, a 6.4 percent increase at the end of 2024, according to the International Swaps and Derivatives Association’s (ISDA) latest annual margin survey.
The survey included 32 firms that collected $431.2 billion of IM at the end of 2024 versus $430.9 billion the year before.
“I’m very proud of the work to help the derivatives industry implement the margin requirements, including development of the ISDA Standard Initial Margin Model and standard rule-compliant documentation, as well as advocacy for globally consistent rules,” Scott O’Malia, ISDA chief executive, said. “ISDA has continued to support implementation as additional jurisdictions have adopted margining requirements, including China, India, Mexico and South Africa.”
Other findings include:
VM collected for non-cleared derivatives rose by 9.3 percent to $1 trillion.
A total of $389.8 billion of required IM was posted to central counterparties for their cleared interest rate derivatives and single-name and index credit default swap transactions, a 0.6 percent decline drop.
ISDA has more than 1,000 member institutions from 76 countries and works to reduce counterparty credit risk, increase transparency, and improve the industry’s operational infrastructure.