The securities industry is applauding global policymakers’ decision to delay the implementation of margin requirements for non-cleared over-the-counter (OTC) derivatives until the fall of 2016.
On Wednesday the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) announced that, in view of their complexity, they are delaying the introduction of margin rules for derivatives that are not centrally cleared.
See: IOSCO delays new margin requirements for derivatives
The requirements were slated to take effect in December of this year, but have now been pushed to September of the following year. The decision is being met with approval from the industry.
The International Swaps and Derivatives Association, Inc. (ISDA) issued a statement welcoming the move. It notes that the new rules will require firms to make significant changes to their infrastructure, technology, processes and documentation. And, while it says that firms have been working hard to do this, it “would have been all but impossible” to meet the original deadline, particularly because the final rules have not yet been published by U.S., European and Japanese authorities.