Launch VideoNew BIS Margining Requirements May Be Death-Knell for Non-Centrally Cleared OTC Derivatives
The combined Basel and IOSCO Working Group on Margining Requirements has issued a consultative document that proposes sweeping changes for the margining of all OTC derivatives that are not centrally cleared. This paper, Margining Requirements for Noncentrally-cleared Derivatives, will impose significant new compliance, record-keeping and risk measurement infrastructure costs on most parties to such transactions and creates significant disincentives to use noncleared OTC derivatives.
