Global requirements for collecting and posting initial margin on non-centrally cleared trades will not be implemented until September 2016 under an extension announced Wednesday.
The Basel Committee on Banking Supervision and the International Organization of Securities Commissions moved back the implementation date to Sept. 1, 2016, from Dec. 1 of this year, and also adopted a new schedule for phasing in the new requirements, said a news release on the website of the Bank for International Settlements, which includes the Basel Committee.
A summary of the changes are on the BIS website.
The rules will eventually require margin on uncleared trades such as inflation swaps and swaptions. Most other swaps are being shifted to central clearinghouses as part of over-the-counter trading reform agreed to by the Group of 20 nations in 2009.
The Commodity Futures and Trading Commission has yet to finalize U.S. rules on uncleared trade margin.
While welcoming the extension, Scott O’Malia, CEO of the International Swaps and Derivatives Association, said in a separate news release that implementation remains “challenging without final rules” from the CFTC.
