International Swaps and Derivatives Association Publishes Guide on Cross-Border Application of Margin Rules

The International Swaps and Derivatives Association has published a guide on the cross-border application of margin rules established under the U.S., EU and Japanese regimes for uncleared derivatives. While most jurisdictions base their margin rules on the framework established by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions, there is still scope for differences to arise under national regimes. The guide provides an overview of the margin rules in each of the three jurisdictions, focussing on the cross-border and substituted compliance elements. It also includes a series of charts showing the application and availability of substituted compliance under each regime.

In December 2019, the European Supervisory Authorities published draft Regulatory Technical Standards on risk mitigation techniques for uncleared OTC derivatives in order to take account of the international framework on bilateral margin proposed by the BCBS and IOSCO. The draft RTS are intended to facilitate international consistency on bilateral margining. The draft RTS are awaiting endorsement by the European Commission.

View ISDA's guide.

View details of the EU's draft RTS on risk mitigation techniques for uncleared OTC derivatives.

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