The CFTC Global Markets Advisory Committee ("GMAC") considered Subcommittee recommendations for improving the scoping and implementation of initial margin requirements for uncleared swaps.
At the meeting, the GMAC Subcommittee on Margin Requirements for Non-Cleared Swaps introduced a report containing a series of recommendations for modifying initial margin ("IM") requirements for uncleared swaps. In addition to making the recommendations below, the Subcommittee urged the CFTC to promptly adopt the COVID-19-related one-year delay in implementation suggested by a Basel Committee on Banking Supervision and IOSCO ("BCBS-IOSCO") recommendation. (The CFTC announced an open meeting on May 28, 2020, at which it is expected to consider this extension.)
In the report, the Subcommittee highlighted the following:
The Basel Committee on Bank Supervision and IOSCO deferred the final implementation phases of initial margin requirements for uncleared derivatives.
Industry associations urged the Basel Committee on Bank Supervision and IOSCO to publicly recommend an extension of the implementation deadlines for the Phase 5 and Phase 6 initial margin requirements for uncleared derivatives.
The Basel Committee on Banking Supervision and IOSCO agreed to a one-year extension of the implementation of derivatives initial margin requirements.