trending Market Intelligence /marketintelligence/en/news-insights/trending/7QquHIZ3a6EjZf6CAghyeA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Final phase-in of risk-reducing margin rules for OTC derivatives begins

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them


Final phase-in of risk-reducing margin rules for OTC derivatives begins

Global financial watchdogs released guidance for market participants who need to alter their derivative contracts as a result of interest rate benchmark reforms and for entities that will be subject to margin requirements for over-the-counter derivatives in 2019.

The Basel Committee for Banking Supervision and the International Organization of Securities Commissions said March 5 the guidance was intended to ensure the "timely and smooth" implementation of their framework for margin requirements for non-centrally cleared derivatives.

The final stage of the framework's implementation is scheduled for Sept. 1, 2020, and starting in 2019, for the first time since implementation began, a large number of entities will have to arrange documentation, custodial and operational requirements if their initial margin amount is greater than the €50 million threshold envisaged in the framework. If the bilateral initial margin amount is lower, the framework does not enforce the aforementioned requirements.

The bodies said market participants that need to revise legacy derivative contracts just to address interest rate benchmark reforms are not required to apply the framework's margin requirements unless relevant implementation laws say otherwise.

The framework, initiated by the G20 to supplement its 2009 over-the-counter derivatives reform program, was established in 2015 and implementation of it began in September 2016. Its main aim is to levy initial and variable margin requirements on all derivatives transactions that are not cleared by central counterparties.

The measures aim to reduce systemic risk by securing non-standardized derivatives, which generally carry higher risk, with appropriate collateral and to promote central clearing to bolster the effectiveness and consistency of margin requirements across jurisdictions. As such, the framework obligates regulatory regimes to interact and develop "consistent, non-duplicative" regulation.