Regulatory Alerts2022-06-13
Joint Communication 1 of 2022: Proposed Amendments to Joint Standard 2 on OTC Derivative Margin Requirements
The Prudential Authority and Financial Sector Conduct Authority have published proposed amendments to Joint Standard 2 of 2020, which govern margin requirements for non-centrally cleared over-the-counter derivative transactions. These amendments enable reporting from both providers and financial institution counterparties, permit risk mitigation for non-cash collateral, refine quantitative portfolio margin model calibration data requirements, align initial margin phase-in timelines with prior notices, and update terminology to match the Financial Sector Regulation Act. Regulated entities must submit their comments using the provided template via email by 25 July 2022.
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