Basel Committee, IOSCO Extend Effective Date of Margin Rules for Non-Centrally Cleared Derivatives

The Basel Committee and the International Organization of Securities Commissions announced today that they will delay for one year the final implementation plan for margin requirements for non-centrally cleared derivatives. With this extension, the final implementation phase will now take place on Sept. 1, 2021.

To facilitate the extension, the groups are introducing an additional implementation phase beginning Sept. 1, 2020. On that date, covered entities with an aggregate average notional amount of non-centrally cleared derivates in excess of $50 billion will become subject to the requirements.

ABA previously raised concerns about the logistical challenges presented by the implementation, particularly the final phase, which will introduce initial margin requirements for a large universe of counterparties.