APRA published CPS 226, the final revised Prudential Standard on margining and risk mitigation for non-centrally cleared derivatives. CPS 226 permits substituted compliance with respect to the margin requirements or provisions of certain foreign bodies. These foreign bodies are OSFI; EC; HKMA; JFSA; Japan’s Ministry of Economy, Trade, and Industry in Japan; Ministry of Agriculture, Forestry, and Fisheries in Japan; MAS; FINMA; and CFTC, Farm Credit Administration, FDIC, FHFA, FED, and OCC in the United States.
APRA had received three submissions on the draft consultation on CPS 226, which was published in May, 2017. In this consultation, APRA had proposed amending CPS 226 to allow an APRA-regulated institution to substitute compliance with the margin requirements or provisions of a comparable foreign jurisdiction for the requirements in CPS 226. Respondents were broadly supportive of the proposals but sought clarity on a number of aspects, to which APRA has responded in its notification letter. The final CPS 226 will take effect on September 01, 2017.
Effective Date: September 01, 2017
Keywords: Asia Pacific, Australia, Banking, Risk Mitigation, Margin Requirements, APRA
Previous ArticleIAIS Newsletter for October 2017
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.