Changes to derivatives margin requirements delayed
19 March 2015 Basel
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Changes for margin requirements for non-centrally cleared derivatives will be delayed by nine months, the Basel Committee and the International Organization of Securities Commissions (IOSCO) has agreed.
Revisions to the margin requirements framework were originally published in September 2013, after two public consultations. Because of the complexities around the changes, implementation for both initial and variation margin will be extended.
The committee and IOSCO also agreed that they would adopt a phase-in arrangement for exchange variations margins.
The beginning of the phase-in period for collecting and posting initial margin on non-centrally cleared trades will be moved from 1 December 2015 to 1 September 2016, with the full phase-in schedule being adjusted to reflect the delay.
Progress of implementation will still be monitored to ensure consistent implementation across products, jurisdictions and market participants. This includes monitoring domestic rule-making as well as guidance on validation and back-testing.
IOSCO and the committee will also liaise with the industry as participants develop initial margin models required for compliance. This engagement is intended to ensure that emerging quantitative margin models comply to the framework, but will not review of approve any particular initial margin model.
Revisions to the margin requirements framework were originally published in September 2013, after two public consultations. Because of the complexities around the changes, implementation for both initial and variation margin will be extended.
The committee and IOSCO also agreed that they would adopt a phase-in arrangement for exchange variations margins.
The beginning of the phase-in period for collecting and posting initial margin on non-centrally cleared trades will be moved from 1 December 2015 to 1 September 2016, with the full phase-in schedule being adjusted to reflect the delay.
Progress of implementation will still be monitored to ensure consistent implementation across products, jurisdictions and market participants. This includes monitoring domestic rule-making as well as guidance on validation and back-testing.
IOSCO and the committee will also liaise with the industry as participants develop initial margin models required for compliance. This engagement is intended to ensure that emerging quantitative margin models comply to the framework, but will not review of approve any particular initial margin model.
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