Draft proposals from the Council of the European Union would curb the ability of resolution authorities to dip into the initial margin accounts of central counterparty (CCP) members during a crisis. However, the absence of an outright ban in the text could allow regulators to find ways of introducing the tool through creative interpretations.

“Initial margin haircutting remains an important issue for us, so it [the council’s text] is a good outcome,” says Bill Stenning, managing director of