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Clifford Chance

Clifford Chance

Briefings

APRA consults on margin requirements for non-centrally cleared OTC derivatives

8 March 2016

On 25 February 2016, the Australian Prudential Regulation Authority (APRA) published a discussion paper (the Discussion Paper) on proposals to implement margin requirements and risk mitigation standards for non-centrally cleared OTC derivatives. Concurrently with the Discussion Paper, APRA released for public-consultation a new prudential standard, Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226), which contains the proposed margin and risk mitigation requirements for APRA regulated entities. The largest APRA regulated entities will need to exchange initial margin and variation margin with covered counterparties starting in September 2016.

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