BCBS and IOSCO Launch Consultation on Margin for Non-Centrally Cleared Derivatives
The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have published a joint consultative paper on margin requirements for derivatives which have not been cleared through a central counterparty.
The proposal sets out a number of high-level principles on margining practices, the treatment of collateral and margin requirements. The principles are envisaged to apply to all transactions involving either financial firms or systemically important non-financial entities.
The proposal will be open for responses until September 28, 2012.