From Yahoo Finance: 2025-04-30 12:57:00

The value of derivative-related margin calls surged threefold following the announcement of larger U.S. tariffs by the Trump administration, causing liquidity stress and a rise in disputes among investors, according to OSTTRA. The demand for margin calls increased by 35%, primarily driven by variation margin to prevent defaulting on trades.

OSTTRA reported that margin call values have returned to pre-tariff levels after a 90-day pause. The platform collects data on margin calls, collateral movements, and disputes in global financial markets, primarily from the derivatives market. Hedge funds managing margin calls faced increased collateral demands due to heightened volatility from tariff policies.

Despite the increased frequency and size of margin calls, hedge funds managed well through the event, according to Ted Post of BNP Paribas. The risk was mitigated as many equity derivatives desks on Wall Street and their clients were positioned and hedged for the market stress. Margin call demand was observed across various markets, including equities, rates, and foreign exchange.



Read more at Yahoo Finance: Tariff-induced volatility caused spike in derivative-related margin calls, data shows