Category: IM
FX Forwards and Swaps to be initial margin free
The WGMR[1] has told Risk magazine that their rules for non-centrally cleared derivatives will be published within weeks. A member of the working group said, “Publication is expected by the end of the month. A specific treatment [i.e. an exemption] for forex swaps and forwards is indeed likely”. Market participants have lobbied hard over the […]
ISDA to Develop Standard Model for Margining Non-Cleared Trades…
…but refuses to take a standing count in the fight over initial margin. This is a link to an article in Risk Magazine which confirms that, despite its continued in-principle opposition to the initial margin proposals contained within the Working Group on Margin Requirement’s (WGMR) consultation paper on “Margin requirements for non-centrally cleared derivatives”, ISDA […]
IOSCO publishes responses to consultation on margin requirements for non-cleared derivatives
On 2 April 2013, the International Organization of Securities Commissions (IOSCO) published a list of the responses it received to its consultation document on margin requirements for non-centrally cleared derivatives, published on 15 February 2013, a more detailed summary of which can be found here. Two notable responses were received from ISDA (primarily for the […]
Basel Guidance Reinforces the Need to Fully Document FX Transactions
On 15 February 2013, the Basel Committee on Banking Supervision (BCBS), part of the Bank for International Settlements (BIS) published finalised supervisory guidance for managing risk associated with the settlement of foreign exchange (FX) transactions. The guidance, which replaces similar rules published in September 2000[1], is to be implemented by banks and national supervisors, taking […]
Prepare to Dust Off Those CSAs…BCBS/IOSCO Publish “Near Final” Margin Rules for Non-Cleared Derivatives
Introduction On 15 February 2013, The Basel Committee on Banking Supervision (“BCBS”) and the International Organization of Securities Commissions (“IOSCO”) published a second consultative paper, representing “near-final” margin requirements for non-centrally cleared derivatives. The BIS/IOSCO proposals focus on 8 key principles, as detailed below. Comments on limited aspects of the consultation paper are sought by […]