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Final Implementation Phases of Margin Requirements for Non-centrally Cleared Derivatives Delayed

The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) said today that they continue to monitor the impact of the rapid spread of the coronavirus disease (Covid-19) on the global financial system.

In light of the significant challenges posed by Covid-19, including the displacement of staff and the need for firms to focus resources on managing risks associated with current market volatility, the Committee and IOSCO have agreed to extend the deadline for completing the final two implementation phases of the margin requirements for non-centrally cleared derivatives, by one year. This extension will provide additional operational capacity for firms to respond to the immediate impact of Covid-19 and at the same time, facilitate covered entities to act diligently to comply with the requirements by the revised deadline.

With this extension, the final implementation phase will take place on 1 September 2022, at which point covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than €8 billion will be subject to the requirements. As an intermediate step, from 1 September 2021 covered entities with an AANA of non-centrally cleared derivatives greater than €50 billion will be subject to the requirements.

The Committee and IOSCO have published a revised version of the margin requirements to reflect this revision on their websites. The groups said the revised publication features no other substantive changes to the margin requirements framework.

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