Featured Product

    AMF Sets Out Initial Margin Expectations for Uncleared OTC Derivatives

    August 19, 2021

    AMF, the financial regulator of Quebec, Canada, issued clarified expectations with respect to the guideline on margins for over-the-counter (OTC) derivatives not cleared by a central counterparty. AMF clarified that any amendment to an existing derivative solely to reflect interest rate benchmark reforms does not qualify as a new derivative within the meaning of the guideline. It also clarified that the documentation, custodial, and operational agreements related to the exchange of initial margin between covered institutions are not required to be entered into until the amount of margin to be exchanged approaches the CAD 75 million threshold. AMF is soon expected to publish an amended guideline to incorporate these clarifications.

    Furthermore, an entry into force phase will be added to the guideline for the initial margin exchange expectations for covered institutions belonging to a financial group whose aggregate month-end average gross notional amount of outstanding covered derivatives for March 2021, April 2021, and May 2021, excluding derivatives traded between entities of the same financial group, exceeds CAD 75 billion. Earlier, in April 2020, AMF had published the amended guideline on margins for OTC derivatives not cleared by a central counterparty. In line with the decision of the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO), the amended version had deferred the effective date of the initial margin expectations to September 01, 2022—that is, one year later than originally planned. With this notice, AMF also supports the BCBS-IOSCO statement released on March 05, 2019.

     

    Keywords: Americas, Canada, Quebec, Banking, Securities, OTC Derivatives, Initial Margin, Basel, Phase 5, Benchmark Reforms, Interest Rate Benchmarks, Guideline, ABCBS, IOSCO, AMF

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582