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COVID-19: Call for delay to compliance dates for initial margin requirements for non-centrally cleared derivatives

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 associations called on the Basel Committee on Banking Supervision Bank for International Settlements (BCBS) and the International Organization of Securities Commissions (IOSCO) to issue an immediate recommendation for global regulators to suspend the compliance dates for phases five and six of the standards. They also asked 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. Once markets return to normal conditions, the new compliance dates must provide sufficient implementation time to allow companies to make the necessary operational changes.

The signatories are:

  • The International Swaps and Derivatives Association (ISDA)
  • The Securities Industry and Financial Markets Association (SIFMA)
  • The Global Financial Markets Association (GFMA)
  • The Global Foreign Exchange Division (GFXD) of GFMA
  • The Investment Adviser Association (IAA)
  • The Australian Financial Markets Association (AFMA)
  • The Alternative Investment Management Association (AIMA)
  • The European Fund and Asset Management Association (EFAMA)
  • The Investment Company Institute (ICI)
  • The American Council of Life Insurers (ACLI)
  • The Institute of International Bankers (IIB)
  • The Managed Funds Association (MFA)
  • The Asia Securities Industry and Financial Markets Association (ASIFMA)
  • The Association for Financial Markets in Europe (AFME)
  • SIFMA Asset Management Group (SIFMA AMG)
  • The International Capital Market Association (ICMA)
  • The Institute of International Finance (IIF)
  • Insurance Europe
  • The European Banking Federation (EBF)
  • Commodity Markets Council Europe (CMCE)
  • The US Chamber’s Center for Capital Markets Competitiveness (CCMC)
Published 26 March 2020