Call for delay in compliance dates for initial margin requirements for non-centrally cleared derivatives

Written by Adam Cadle

26/03/2020

A wide group of financial associations – including Insurance Europe – has called for a delay in the compliance dates for initial margin requirements for non-centrally cleared derivatives to account for problems companies face due to the COVID-19 pandemic.

The Basel Committee on Banking Supervision for International Settlements (BCBS) and the International Organisation of Securities Commissions (IOSCO) are being urged to issue an immediate recommendation for global regulators to suspend the compliance dates for phases five and six of the standards. The associations are also asking global regulators to act swiftly to provide reassurance in their jurisdictions.

“As the overall impact of COVID-19 may not be known for some time, decisions regarding a new implementation timeline should be delayed until the pandemic has ended,” Insurance Europe argued.

“Once markets return to normal conditions, the new compliance dates must provide sufficient implementation time to allow companies to make the necessary operational changes.”

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