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 […]

Introduction On 3 July 2013, the Basel Committee on Banking Supervision (BCBS) published an “Updated assessment methodology and the higher loss absorbency requirement” (the “Updated Methodology”) for identifying globally systemically important banks (“G-SIBs”), accompanied by a reporting template and instructions. The Methodology The Updated Methodology replaces the BCBS’ previous “Global systemically important banks: assessment methodology […]

On 18-19 June 2013, the Board of the International Organization of Securities Commissions (IOSCO) met in Montreal.  Following this meeting, a press release was published on 1 July 2013 confirming that: the “Principles for margin requirements for non-centrally cleared derivatives” will be finalised in July, following discussion of a number of outstanding issues, including whether […]

Introduction On 28 June 2013, the Basel Committee on Banking Supervision (BCBS) published a consultative document entitled “Capital treatment of bank exposures to central counterparties” (CCPs).  The purpose of the document is to consult on possible changes to the BCBS’ July 2012 interim rules on Capital requirements for bank exposures to central counterparties (the “Interim […]

…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 […]

On 12 April 2013, the International Swaps and Derivatives Association (ISDA) published a Letter on Margin Requirements for Non-Centrally Cleared Derivatives written jointly with the Institute of International Finance (IIF), the Association of Financial Markets in Europe (AFME) and the Securities Industry and Financial Markets Association (SIFMA). The letter is addressed to the Basel Committee […]

On 11 April 2013, the Bank for International Settlements (BIS) published a consultative report on “Authorities’ access to trade repository data”, drafted by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO). The objective of the report is to provide guidance to trade repositories (TRs) and authorities on […]

Here is a link to an interesting article in Risk Magazine regarding the potential impact of the “near final” BCBS/IOSCO margin rules for non-cleared derivatives (the “BCBS/IOSCO Rules”) on the adoption of ISDA’s standard credit support annex (SCSA). The BCBS/IOSCO consultation paper which includes the “near final” rules was published on 15 February 2013 (see […]

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 […]