Margin Requirements For Non-Centrally Cleared Derivatives: Updated Proposals For International Standards – The Discussion Continues

BCBS and IOSCO Released Second Consultative Document

The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) released a second consultative document (the Second Paper) that presented "the near-final policy framework that establishes minimum standards for margin requirements" for non-centrally cleared (NCC) derivatives. The BCBS and IOSCO indicate that the proposed framework in the Second Paper reflects their consideration of the responses to their first consultative document issued in July 2012 (the First Paper) and the results of the quantitative impact

(QIS) conducted by the BCBS and IOSCO. A copy of BLG's Derivatives Alert on the First Paper can be found [ here]. Over 80 entities, including a number of global or international industry associations such as the International Swaps and Derivatives Association (ISDA), provided their feedback and comments on the framework proposed in the Second Paper.