Regulatory Alerts2020-12-21
Added · Updated
Commission Delegated Regulation (EU) 2021/236 amending technical standards on the timing of risk management procedures for collateral exchange
The European Commission amends Delegated Regulation (EU) 2016/2251 to extend the implementation deadlines for initial margin requirements on non-centrally cleared OTC derivatives. Counterparties with an aggregate average notional amount above EUR 50 billion must comply from 1 September 2021, while those above EUR 8 billion must comply from 1 September 2022. The regulation also introduces a permanent exemption from variation margin requirements for physically settled foreign exchange forwards and swaps entered into with non-institutions. Additionally, it defers collateral exchange obligations for contracts novated to replace UK counterparties with EU-based entities until 1 January 2022 and postpones requirements for single-stock equity and index options until 4 January 2024.