BCBS extends margin requirements for non-centrally cleared derivatives
23 July 2019 Basel
Image: Shutterstock
The Basel Committee on Banking Supervision and the International Organisation of Securities Commissions (IOSCO) have agreed to a one-year extension the final implementation phase of the margin requirements for non-centrally cleared derivatives.
With this extension, the final implementation phase will take place on 1 September 2021, the Basel Committee revealed.
At this point, covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than €8 billion will be subject to the requirements.
According to the Basel Committee and IOSCO, the extended timeline is set to support the smooth and orderly implementation of the margin requirements.
This is consistent and harmonised across their member jurisdictions and will also help avoid market fragmentation that could otherwise ensue.
The Basel Committee and IOSCO expect that covered entities will act diligently to comply with the requirements by this revised timeline and strongly encourage market participants to make all relevant arrangements on a timely basis.
Meanwhile, a revised version of the margin requirements has been published on the Basel Committee and IOSCO’s websites to reflect the extended timeline.
With this extension, the final implementation phase will take place on 1 September 2021, the Basel Committee revealed.
At this point, covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than €8 billion will be subject to the requirements.
According to the Basel Committee and IOSCO, the extended timeline is set to support the smooth and orderly implementation of the margin requirements.
This is consistent and harmonised across their member jurisdictions and will also help avoid market fragmentation that could otherwise ensue.
The Basel Committee and IOSCO expect that covered entities will act diligently to comply with the requirements by this revised timeline and strongly encourage market participants to make all relevant arrangements on a timely basis.
Meanwhile, a revised version of the margin requirements has been published on the Basel Committee and IOSCO’s websites to reflect the extended timeline.
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