The spread of COVID-19 has not stopped the OSFI of Canada from verifying their IM arrangements. As was previously covered, the OSFI of Canada has issued a revised version of its Margin Requirements for Non-Centrally Cleared Derivatives. Since BCBS’s March 2019 announcement, the OSFI was the first regulator to announce that they would be extending […]

US’ Prudential Regulators (FDIC, Federal Reserve, FDIC, OCC, FHFA and FCA) have become the latest to issue a proposal for amending Swap Margin Requirements. The CFTC was the first regulator to adopt the BCBS’ mitigation recommendations, staggering the ‘Big Bang’ Phase 5 and 6 thresholds, so it was only a matter of time for the […]

The latest IM deadline passed at the start of this month without fanfare, and larger firms were able to breathe their fourth sigh of relief. A year from now, the challenge will not be as “easy”. In Phase 4, approximately 35 firms fell in-scope of the €750 bn threshold. Updated numbers for Phase 5 show […]

Highlander 1986, “There can be only one!” or for a younger generation, “When you play the game of thrones, you win or die”. Risk magazine reports that MarginXchange (MX) has retired from the fray, leaving an open (if depleted) field for its erstwhile rival ISDACreate (IC). MX was established by the triumvirate of Allen & Overy, […]

Confirming recent market rumours, BCBS\IOSCO have today announced their recommendation to stagger IM Phase 5 implementation over a two year period. An adjusted Phase 5 will apply to firms with an AANA equal to or greater than USD\EUR 50bn and less than 750bn. A new Phase 6, from 1 September 2020 to 1 September 2021, […]

Risk Magazine is reporting today about the keynote speech given by Patrick Pearson (Head of the Financial Market Infrastructure and Derivatives unit at the European Commission) at the OpRisk Europe conference in London earlier today.  He is reported to have hinted that a delay in the implementation of the final phase of the IM rules […]

The FSB has confirmed the final levels and timeline for the Total Loss-Absorbing Capacity (TLAC) standard for global systemically important banks (G-SIBs), a central element in the Basel III TBTF diet. TLAC sets a minimum requirement for instruments and liabilities that will be available to bail-in a G-SIB undergoing resolution; it acts to set a […]

The BCBS\IOSCO twins confirmed yesterday that the imposition of margin requirements for uncleared swaps will be delayed by nine months. The phase-in schedule for the mandatory posting of initial and variation margin will now begin in September 2016, while still adhering to its four-year schedule, beginning with “the largest, most active and most systemically important […]

The industry’s call for a delay in the margin rules, expected to apply from 1 December 2015, may finally receive a positive response from the regulators[1]. These rules on risk-management of uncleared derivatives will impose collection of Initial Margin (IM) and Variation Margin (VM). The global phase-in timeline was set by the Basel Committee on […]