ISDA Margin Survey Shows Leading Derivatives Firms Collected Record $1.6 Trillion of Margin in 2025

Why It Matters

The surge in margin underscores heightened funding demands and risk management intensity across the derivatives market, while the collateral shift and regulatory proposals aim to safeguard liquidity and reduce systemic risk.

Key Takeaways

• Margin collected hit $1.6 trillion, up 9.3% YoY
• Initial margin rose 21.7% to $524.7 billion
• Variation margin grew 4% to $1.04 trillion
• Cash share of VM fell to 67.6%; securities rose
• ISDA proposes SFT regulatory tweaks to improve risk sensitivity

Pulse Analysis

The International Swaps and Derivatives Association (ISDA) reported that leading derivatives firms collected a record $1.6 trillion in margin for non‑cleared exposures at the end of 2025, a 9.3 percent increase over 2024. Initial margin (IM) surged 21.7 percent to $524.7 billion, while variation margin (VM) rose 4 percent to $1.04 trillion. The growth reflects higher notional volumes, tighter post‑trade risk controls and the ongoing migration of trades into regulated environments. For banks and asset managers, the expanding collateral pool intensifies funding pressures but also underscores the robustness of risk‑mitigation practices.

Alongside the volume rise, the composition of collateral is changing. Cash, which historically dominated VM receipts, slipped to 67.6 percent of total VM, down from 80 percent in 2020, as participants increasingly accept government securities (now 20.2 percent) and other high‑quality assets (12.3 percent). For IM, government securities fell to 52.6 percent while other securities climbed to 37.2 percent, indicating a broader search for liquid, high‑grade assets. This diversification fuels demand in the securities‑financing transaction (SFT) market, where firms convert less liquid holdings into usable margin collateral.

To sustain this evolving collateral landscape, ISDA has proposed targeted adjustments to the regulatory framework governing SFTs, including a cross‑product netting methodology that aligns with the Basel III standardized approach. By better calibrating risk sensitivity, the changes aim to preserve the availability of high‑quality liquid assets even in stressed market conditions. If adopted, the reforms could lower funding costs for derivatives participants, reduce systemic risk, and reinforce the resilience of both cleared and non‑cleared markets. Market watchers will monitor regulator response as the proposals move through consultation.