Regulatory Alerts2017-09-18
Margin Requirements for Non-Centrally Cleared Derivatives
The Saudi Arabian Monetary Agency issued binding regulations on 1 October 2013 mandating margin requirements for non-centrally cleared derivatives across all banks. Aligned with the September 2013 BCBS and IOSCO framework, these rules finalize Basel III implementation standards for derivative exposures. Financial institutions must comply with the prescribed collateral posting and valuation protocols to mitigate counterparty credit risk.
�aubi �rabian ;lllllonetarp �gencp Banking Supervision Dept. From Saudi Arabian Monetary Agency 351000129057 =�� 1435/10/17 : C:-'.J�1 : ..:,1.-,l;_,.ol\ To All Banks Attention: CFOs and CROs Subject: SAMA Circular # 341000134328 dated 1 October 2013 concerning Margin Requirements for Non-Centrally Cleared Derivatives" SAMA issued on 1 October 2013 its regulations concerning Margin Requirements for Non-Centrally Cleared Derivatives. These regulations were based on the document issued by the BCBS and IOSCO of September 2013. Since that date, for the purpose of Basel Ill implementation, the aforementioned SAMA's regulation document should be considered as final and binding. Best regards, Alwaleed Alsheikh � Director of Banking Supervision P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119