Basel Committee and IOSCO Revise Implementation Schedule of Margin Requirements for Uncleared Swaps
The Basel Committee on Banking Supervision ("BCBS") and IOSCO announced revisions to the uncleared margin framework. The revisions will delay the implementation of the bilateral exchange of margin for uncleared derivatives.
The new timeline calls for the requirements to be implemented as follows:
- Variation Margin
- September 2016: Covered entities belonging to a group with a notional amount of uncleared derivatives activities during a measuring period ("group notional") that exceeds €3 trillion.
- March 2017: All other covered entities.
- Initial Margin
- September 2016: Covered entities with a group notional that exceeds €3 trillion.
- September 2017: Covered entities with a group notional that exceeds €2.25 trillion.
- September 2018: Covered entities with a group notional that exceeds €1.5 trillion.
- September 2019: Covered entities with a group notional that exceeds €0.75 trillion.
- September 2020: Covered entities with a group notional that exceeds €8 billion.
See: Press Release; September 2013 Framework for Margin Requirements for Non-Centrally Cleared Derivatives.See also: SIFMA Statement. Related news: Delta Strategy Group Update: Basel and IOSCO Final Framework for Minimum Margin Requirements (September 6, 2013); Basel Committee and IOSCO Release Margin Requirements for Non-Centrally Cleared Derivatives Final Framework (September 3, 2013).