This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) and Financial Conduct Authority’s (FCA) proposals to establish or extend exemptions for some products subject to bilateral margining requirements, and to align implementation phases and thresholds to the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) standards.
The proposals in this CP would result in changes to the UK version of Commission Delegated Regulation (EU) 2016/2251 of 4 October 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty (hereafter Binding Technical Standards (BTS) 2016/2251), the Technical Standards under Article 11(15) of the European Market Infrastructure Regulation (EMIR).
This CP is relevant to PRA-authorised firms that are financial counterparties for the purposes of Article 2 of EMIR. In addition, this CP is relevant to all FCA solo-regulated entities and non-financial counterparties in scope of the margin requirements under UK EMIR.
The consultation paper is available at https://www.bankofengland.co.uk/prudential-regulation/publication/2021/march/margin-requirements-for-non-centrally-cleared-derivatives