OSFI revised Guideline E-22 that establishes minimum standards for margin requirements for non-centrally cleared derivative transactions undertaken by federally regulated financial institutions. The revised guideline becomes effective immediately. The guideline is in line with the BCBS-IOSCO framework and is addressed to banks, foreign bank branches, bank holding companies, trust and loan companies, life insurance companies, property and casualty insurance companies, and insurance holding companies.
The revisions consist of two changes: a clarification on the treatment of securities issued by entities that receive capital support from the US government and the extension of the final implementation of the initial margin requirements by one year. The extension of the final implementation of the initial margin requirements is in line with the internationally agreed upon one-year extension. With this extension, the final implementation phase will take place on September 01, 2021.
Effective Date: March 11, 2020
Keywords: Americas, Canada, Banking, Insurance, Securities, Margin Requirements, Guideline E-22, Non-Centrally Cleared Derivatives, OTC Derivatives, Initial Margin, OSFI
Previous ArticleOJK Requests Responses on Publication of Commercial Bank Reports
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.