BCBS and IOSCO agree to one-year extension of the final implementation phase of the margin requirements for non centrally cleared derivatives. With this extension, the final implementation phase will take place on September 01, 2021, at which point covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than EUR 8 billion will be subject to the requirements. To facilitate this extension, BCBS and IOSCO will introduce an additional implementation phase whereby, as of September 01, 2020, covered entities with an AANA of non-centrally cleared derivatives greater than EUR 50 billion will be subject to the requirements.
In the final phase of implementation, initial margin requirements are scheduled to apply to a large number of entities for the first time. In March 2019, BCBS and IOSCO published a statement noting that the framework does not specify documentation, custodial, or operational requirements if a covered entity's bilateral initial margin amount does not exceed the framework's EUR 50 million initial margin threshold. BCBS and IOSCO have agreed to this extended timeline in the interest of supporting a smooth, orderly, harmonized and consistent implementation of the margin requirements across their member jurisdictions to help avoid market fragmentation that could otherwise ensue. BCBS and IOSCO expect that covered entities will act diligently to comply with the requirements by this revised timeline and strongly encourage market participants to make all relevant arrangements on a timely basis. BCBS and IOSCO have published a revised version of the margin requirements to reflect this limited revision to extend the implementation timeline by one year. The revised publication features no other substantive changes to the margin requirements framework.
Keywords: International, Banking, Securities, OTC Derivatives, Margin Requirements, AANA, Implementation Timeline, IOSCO, BCBS
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.