Bilateral Margin Rules – 8 Clues You Need to Know: A Sungard Whitepaper
Earlier this year, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) announced revisions to the framework for margin requirements for non-centrally cleared derivatives, giving participants a bit more time until we see the end of the OTC markets as we know them in late 2016.
The actual regulations are being drafted and considered by a number of organizations, including the Federal Deposit Insurance Corporation (FDIC) and Commodity Futures Trading Commission (CFTC) in the U.S. and the European Banking Authority (EBA) in the EU. None of the proposals from these organizations has reached a final status, as regulators recognize the need for a global approach. Everything is not yet aligned, however. In particular, in the current proposals, which define thresholds of to whom the rules will apply, the U.S. version includes smaller buy-size organizations while the EU version does not, seemingly creating an incentive for firms to move their OTC business outside the U.S.
To find out more, download 'Apex Collateral Update', the Sungard whitepaper that is attached below.