Regulatory Alerts2023-06-09
Joint Communication 1 of 2023: Amendments to Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions
The Financial Sector Conduct Authority and Prudential Authority issued Joint Standard Amendment 1 of 2023 to refine margin requirements for non-centrally cleared over-the-counter derivative transactions. The amendments introduce reporting provisions for providers and counterparties, establish risk mitigation rules for non-cash collateral, and clarify calibration periods for quantitative portfolio margin models. Additionally, the regulatory update aligns initial margin phasing schedules with prior notices and harmonizes terminology with the Financial Sector Regulation Act, taking effect upon publication.
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