BCBS advises G20 to delay CCP reg deadline
30 August 2016 Hangzhou
Image: Shutterstock
The deadlines for implementing Basel III’s capital requirements for central counterparty (CCP) exposures and margin requirements for non-centrally cleared derivatives should be pushed back, according to the Basel Committee on Banking Supervision (BCBS).
In a report set to be presented at the upcoming G20 meeting in China in September, the BCBS outlined a number of regulatory deadlines that it now considered to be unrealistic given the limited progress made by some jurisdictions.
The BCBS stated: “The [jurisdictions'] reported challenges relate in part to domestic legislative or rulemaking processes. In addition, some jurisdictions report that banks face difficulties in adjusting their information systems to meet and report on the new requirements.”
As a result, the BCBS has recommended that the current deadline of January 2017 for compliance with the new capital requirements for CCP exposure, along with the September 2016 deadline for Basel’s margin requirements for non-centrally cleared derivatives, should be revised.
The BCBS did not recommend any revised deadlines.
The BCBS added that although it acknowledged that “delayed implementation may have implications for the level playing field, and puts unnecessary pressure on jurisdictions that have implemented the standards based on the agreed timelines”, this was trumped by the need to ensure consistent implementation of Basel’s standards.
This is primarily due to the fact that many jurisdictions serve as hosts to internationally active banks.
In a report set to be presented at the upcoming G20 meeting in China in September, the BCBS outlined a number of regulatory deadlines that it now considered to be unrealistic given the limited progress made by some jurisdictions.
The BCBS stated: “The [jurisdictions'] reported challenges relate in part to domestic legislative or rulemaking processes. In addition, some jurisdictions report that banks face difficulties in adjusting their information systems to meet and report on the new requirements.”
As a result, the BCBS has recommended that the current deadline of January 2017 for compliance with the new capital requirements for CCP exposure, along with the September 2016 deadline for Basel’s margin requirements for non-centrally cleared derivatives, should be revised.
The BCBS did not recommend any revised deadlines.
The BCBS added that although it acknowledged that “delayed implementation may have implications for the level playing field, and puts unnecessary pressure on jurisdictions that have implemented the standards based on the agreed timelines”, this was trumped by the need to ensure consistent implementation of Basel’s standards.
This is primarily due to the fact that many jurisdictions serve as hosts to internationally active banks.
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