For variation margin payments, cash is no longer king


One of the last bastions of cash-only payments in the financial markets is showing signs of wavering.

Global banks accepted $325 billion of non-cash variation margin (VM) at the end of 2024, according to the International Swaps and Derivatives Association’s latest margin survey – accounting for a record 31.6% of the roughly $1 trillion in total VM collected by dealers to cover changes in the market price of non-cleared derivatives.

Buy-side firms are understood to be largely responsible for the

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AsiaAustraliaBilateral tradeBuy sideCashCollateralEuropeInternational Swaps and Derivatives Association (Isda)kinglongermarginNon-cleared tradesNorth AmericaPaymentsSwapsTradingUnited States (US)variationVariation margin
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