Key Points:
The new margin requirements will complement other G-20
measures to reduce the systemic risk imposed by the
over-the-counter (OTC) derivatives market that have been in
development since 2009.
The Basel Committee on Banking Supervision and the International
Organization of Securities Commissions (IOSCO)
last week published a consultative paper on
margin requirements for non-centrally-cleared derivatives. The
paper follows a commitment made by the G-20 last year to establish
a framework for mandatory posting of collateral as security to
support the obligations of parties to non-centrally-cleared
derivatives transactions.
The new margin requirements will complement other G-20 measures
to reduce the systemic risk imposed by the over-the-counter
(OTC) derivatives market that have been in
development since 2009. These include mandatory central clearing
and electronic trading of standardised OTC derivatives, and trade
reporting of all OTC derivatives
