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Article: Counting Down to the 'New' VM Deadline | Regulation Asia

05 April 2017 | Samuel Riding

1st of September highly likely to be the final cut-off for meeting OTC derivatives margin requirements.

Samuel Riding, Editor, Regulation Asia

This article first appeared here and is reproduced with permission.

International standards for VM (variation margin) and IM (initial margin) have been a source of consternation, and no little confusion, for final institutions and non-financial participants in OTC (over-the-counter) derivatives markets ever since they were first ‘finalised’ by the Basel Committee on Banking Supervision and IOSCO (the International Organization of Securities Commissions) in 2013.

Individual jurisdictions were slow in coming up with their own variations on the guidelines. In Asia, MAS (the Monetary Authority of Singapore) only released its guidelines on VM on 6 December last year, and HKMA (the Hong Kong Monetary Authority) only publicised its ‘near final’ regulations pertaining to the issue at around the same time. Both provided for a six-month “transition period” from the

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