Also, the mandatory posting of collateral for uncleared derivatives, as governed by the European Market Infrastructure Regulation (EMIR), entered into force at the beginning of the year, and from 1 March 2017, all in-scope counterparties are obliged to post variation margins with a phased-in implementation for initial margins from 1 September 2017 through to 1 September 2020.
The commitment device bites back This blow-by-blow account fails, however, to explain why these mechanisms have been so uniquely pernicious in the euro area: after all, all of the world’s economies have been hit by the crisis to some extent or another.