Margin for non-cleared derivatives

Introduction When I started in securities custody there were no specific laws or rules about it, few regulators knew what it was, accounts were opened for new clients on the strength of a telex request and contracts to look at as precedents, if there were any at all, were two, perhaps as many as six […]

Read More...

On 13 October 2017, the CTC and the EU announced substituted compliance determinations in respect of margin requirements for OTC derivatives. The determinations accept that the CFTC’s Final Margin Rule and EMIR’s risk mitigation and margin requirements are sufficiently comparable on a substantive outcomes basis. For those interested in reading the full text, we recommend […]

Read More...
December 15th, 2016 by Nick Railton-Edwards Tags: , ,

The long wait for EU non-cleared margin rules is finally over. Delegated Regulation (EU) 2016/2251 was published in the Official Journal this morning. Publication fires the starting gun for application, giving a phase 1 start date for Category 1 IM and VM of , which will make an effective date of 6 February 2017.  Phase 2 […]

Read More...

The FT website is reporting unnamed sources which confirm that Council approval of the EU non-cleared margin rules will be slightly delayed until 21 November. The Council is relatively free from formal procedures for approval and has been the subject of intense, but quiet, lobbying by investment banks keen to avoid the unfortunate coincidence of […]

Read More...

As expected the European Commission has today adopted the EMIR non-cleared margin RTS. The adoption is in the form of a Delegated Regulation which will be subject to an objection period by the Parliament and the Council. While both bodies are entirely capable of lodging late-stage objections, as evidenced by the recent PRIIPS paralysis, such […]

Read More...

On 28 July 2016 the EC published a letter to the Joint Committee of the European Supervisory Authorities (ESAs), stating that it will endorse a revised text [1] of the RTS on risk mitigation techniques for non-cleared OTC derivatives Article 11(15) of EMIR. The market has been on tenterhooks since 9 June 2016 when the Commission announced that it would […]

Read More...

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 […]

Read More...

OpenGamma, the open source trading and risk analytics platform, have announced a plan to create an industry-wide utility to facilitate compliance with the (eventually) forthcoming rules on the margining of non-cleared trades. Margin calculations will use the standard initial margin model (SIMM), as amended by each individual user, a reference copy of the open source […]

Read More...

Any hopes of seeing a global standard with respect to the margining of non-cleared derivatives in the near future seem to have been dashed. Risk reports that the group tasked with drafting the rules, the Working Group on Margining Requirements (a joint working group of the Basel Committee on Banking Supervision and the International Organization […]

Read More...
Stay Up-To-Date

Visit Our Blog

View Timeline

 

Memberships:

Copyright © 2019

Document Risk Solutions Ltd