ISDA has issued an analysis of the impact of current proposals for initial margin requirements for non-centrally cleared derivatives. It concludes that the level of initial margin required would be significant, with the exact amount depending on where thresholds were placed, on the availability of netting and of one-way posting from users to dealers (as in the US), and on whether the use of internal models would be allowed. An increase of initial margin calls in situations of market stress would also have pro-cyclical effects. Instead of initial margin, ISDA favours robust variation margin requirements, mandatory clearing for standardised and liquid products, and capital standards. (Source: Margin Requirements on Non-Centrally Cleared Swaps Could Increase Risk)