HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives. The final phase of initial margin requirements that was originally scheduled on September 01, 2020 will be postponed to September 01, 2021. Additionally, an interim phase with an aggregate average notional amount (AANA) threshold of HKD 375 billion will be introduced for the one-year period starting from September 01, 2020. The Supervisory Policy Manual module CR-G-14 will be amended accordingly before the end of this year. HKMA expects that authorized institutions will act diligently to make all relevant arrangements on a timely basis and comply with the requirements by this revised timeline.
BCBS and IOSCO recently issued a joint statement on extending the final implementation of the initial margin requirements by one year. With this extension, the final implementation phase will commence on September 01, 2021, at which point covered entities with AANA of non-centrally cleared derivatives greater than EUR 8 billion will be subject to the initial margin requirements. To facilitate the extension, BCBS and IOSCO introduced an additional implementation phase whereby covered entities with an AANA of non-centrally cleared derivatives greater than EUR 50 billion will be subject to the initial margin requirements for the period from September 01, 2020 to August 31, 2021.
Keywords: Asia Pacific, Hong Kong, Banking, Securities, OTC Derivatives, Margin Requirements, AANA, Implementation Timeline, IOSCO, BCBS, HKMA
Previous ArticleHKMA Publishes FAQs on IRRBB Framework in April 2019
PRA proposed rules (in CP12/21) for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies that have been approved or designated in accordance with Part 12B of the Financial Services and Markets Act 2000 (FSMA).
ECB Banking Supervision announced that euro area banks it directly supervises may continue to exclude certain central bank exposures from the leverage ratio until March 2022.
OSFI decided to increase the Domestic Stability Buffer from 1.00% to 2.50% of total risk-weighted assets, with effect from October 31, 2021.
HKMA is requesting banks to participate in a tech baseline assessment, which forms part of the HKMA Fintech 2025 strategy.
OSFI published two documents to consult on the management of operational risk capital data for institutions required, or for those applying, to use the Basel III standardized approach for operational risk capital in Canada.
The NGFS Study Group on Biodiversity and Financial Stability published a Vision paper exploring the case for action in addressing the financial stability concerns arising from biodiversity loss.
ACPR published the final version of CREDITIMMO 2.3.0 taxonomy for the decree of October 31, 2021.
EC, has approved, under the EU State Aid rules, the fourth prolongation of the Italian guarantee scheme to facilitate the securitization of non-performing loans.
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.