ESMA publishes final report for bilateral margining, amendments conform to BCBS-IOSCO

This final report presents new draft regulatory technical standards (RTS) on the risk mitigation techniques for OTC derivative contracts not cleared by a CCP (bilateral margining) that the European Supervisory Authorities (ESAs) have developed.

The draft RTS propose to introduce a number of amendments to the Commission Delegated Regulation on bilateral margining that take into account the international framework agreed by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO).

In view of the progress made globally towards the implementation of the international framework, stakeholders have asked for a number of adjustments in the EU legislative rulebook in order to better facilitate international consistency. These relate to the treatment of physically settled FX forward and swap contracts, intragroup contracts, equity option contracts and the implementation of the initial margin requirements.

The ESAs’ proposal includes amendments of the Commission Delegated Regulation on bilateral margining in order to facilitate further international consistency towards the implementation of the international framework. The proposed amendments are an adaptation of the timelines and rules to facilitate the current implementation of the Commission Delegated Regulation, and more broadly of the international framework.

Read the full report

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