Regulatory Alerts2023-07-31
FMI Standard 6: Margin
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued FMI Standard 6 to mandate risk-based margin systems for designated central counterparty operators. The standard requires operators to maintain initial and variation margin models that cover at least 99 percent of potential future exposure while ensuring timely price data and intraday margin call capabilities. Operators must also conduct rigorous daily back-testing, monthly sensitivity analysis, and annual reviews to validate model performance and system adequacy.
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