Publications

International regulators have now published a ‘near-final’ policy framework setting minimum standards for margin requirements for uncleared derivatives.

“Margin requirements for non-centrally cleared derivatives - Second consultative document” (February 2013) published by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) follows up on the first consultation document published in July last year. It makes some significant changes to the original proposals, including changes that would allow firms to use a €50m threshold for initial margin and proposals to phase-in the requirements from 1 January 2015. Even so, the accompanying quantitative impact study indicates that the proposals would increase the level of initial margin held across the 39 firms studied from €100 billion to €558 billion (or €0.7 trillion for the global industry).

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