BIS Issues Final Margin Requirements for Non-centrally Cleared Derivatives

The Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) have published their final framework for margin requirements for non-centrally cleared derivatives. The document sets forth globally agreed standards for all financial firms and systemically important non-financial entities that engage in non-centrally cleared derivatives. Under the guidelines, these firms will have to exchange initial and variation margin commensurate with the counterparty risks arising from such transactions. The aim of this framework is to reduce systemic risks related to over-the-counter (OTC) derivatives markets, as well as to provide firms with appropriate incentives for central clearing while managing the overall liquidity effects of these new requirements.
Tuesday, September 10, 2013/Author: David Schwartz J.D. CPA/Number of views (21475)/Comments (0)/
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