FSB: members must improve OTC margin compliance
31 August 2016 Basel
Image: Shutterstock
Around half of Financial Stability Board (FSB) member jurisdictions need to “urgently take steps” to get back on track with their implementation of over-the-counter (OTC) margin requirements, according to the FSB.
In its eleventh progress report on the implementation of OTC derivatives market reforms, the FSB noted that only Canada, Japan and the US are expecting to successfully meet the first September 2016 deadline.
At the same time, Australia, the EU, Hong Kong, Singapore and Switzerland have all admitted they will be unable to meet the September deadline, while around half of all members are currently expected to miss the final March 2017 deadline, given their current progress.
The report highlighted that progress in meeting margin requirements for network control centre data (NCCDs) lagged behind capital requirements for exposures to NCCDs, which the FSB noted were “largely in force”.
Twenty jurisdictions now have requirements in force that apply to over 90 percent of OTC derivatives transactions.
In its eleventh progress report on the implementation of OTC derivatives market reforms, the FSB noted that only Canada, Japan and the US are expecting to successfully meet the first September 2016 deadline.
At the same time, Australia, the EU, Hong Kong, Singapore and Switzerland have all admitted they will be unable to meet the September deadline, while around half of all members are currently expected to miss the final March 2017 deadline, given their current progress.
The report highlighted that progress in meeting margin requirements for network control centre data (NCCDs) lagged behind capital requirements for exposures to NCCDs, which the FSB noted were “largely in force”.
Twenty jurisdictions now have requirements in force that apply to over 90 percent of OTC derivatives transactions.
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