Basel and IOSCO consult on margins

Basel and the International Organisation of Securities Commissions (IOSCO) are consulting on margin requirements for non-centrally cleared derivatives. The paper suggests a set of principles covering:

• what instruments should be subject to the requirements;
• the scope of applicability;
• baseline minimum amounts and methodologies for initial and variation margin;
• eligible collateral for margin;
• treatment of provided margin;
• treatment of transactions with affiliates; and
• interaction of national regimes in cross-border transactions.

The paper also considers the impact of the proposed requirements. The organisations want comments by 28 September. (Source: Basel and IOSCO Consult on Margins)