ISDA Urges Regulators To Realign Derivatives Margin Implementation Schedules

ISDA CEO Scott O'Malia urged regulators to realign their timetables to the global implementation deadline for margin requirements for uncleared derivatives.

Noting the European Commission's recent announcement that it would not finalize its uncleared derivatives margin requirements in time for the planned September 1, 2016 beginning of margin, Mr. O'Malia observed that no other jurisdiction to date has delayed its margin requirements. Mr. O'Malia acknowledged the value of spending the "necessary time to ensure [that European regulators'] rules are appropriate," but contrasted that approach with the punctuality of other jurisdictions. He concluded that the European Commission's timetable-splintering delay creates an "unlevel playing field," and introduces complexity that will increase exponentially with the scheduled phase-in of variation requirements in March 2017. In consideration of these issues, Mr. O'Malia said, ISDA is urging regulators to realign their