Margin Requirements For Non-Centrally Cleared Derivatives

On October 19, 2015, the Office of the Superintendent of Financial Institutions (OSFI) published for public consultation a draft of Guideline E-22 — Margin Requirements for Non-Centrally Cleared Derivatives. The purpose of the draft Guideline is to provide clear and comprehensive guidance to all federally-regulated financial institutions¹ (FRFIs) on the variation and initial margin requirements that will take effect starting September 1, 2016. As presently drafted, the draft Guideline requires the exchange of margin to secure the performance of non-centrally cleared derivatives (NCCD) transactions, which are derivative transactions that are not cleared through a central counterparty, between Covered Entities (as defined in the draft Guideline). The draft Guideline is available.