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 published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).