New rules on how much collateral is needed to back derivatives trades are unlikely to be finalised before September, leaving markets in limbo as global regulators seek to minimise potential harm to economic recovery. World leaders had requested that the rules be in place by the end of 2012. However, agreement has proved difficult because of the huge demand for collateral at a time when banks are already being forced to beef up their capital reserves. The delay has left markets second-guessing the changes to how the $640 trillion derivatives market will function and plug gaps highlighted by the financial crisis. David Wright, secretary general of the International Organisation of Securities Commissions, comprising all the world's main market regulators, said on Wednesday that the final shape of the rules on posting collateral, also known as margining, needed further consideration. "We need to do more economic thinking on the balance of the overall package," he told a conference
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