THE IMPACT OF BCBS/IOSCO ON COLLATERAL | Whitepaper From Sungard
Alex Soane, product manager, operations for SunGard’s Apex Collateral solution, assesses the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commission’s (IOSCO) proposed plan to further mitigate the risk of non-cleared derivatives.
It is important to understand that the impact of this regulation is far reaching; arguably more so than central clearing due to the breadth of liable parties and the non-standard trade types covered.
Under the new globally agreed standards, all financial firms and “systemically important non-financial entities” engaging in non-cleared derivatives trading will have to exchange initial and variation margin with their counterparties.
Follow this link to download the paper: http://financialsystems.sungard.com/solutions/collateral-management/resources/capital-markets_white-papers_collateral-bcbs-iosco