Regulatory Alerts2019-04-08
Comment Template: Draft Joint Standard on Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions
The Financial Sector Conduct Authority and the South African Reserve Bank issued this template to collect stakeholder feedback on a draft joint standard mandating initial and variation margin exchanges for non-centrally cleared over-the-counter derivative transactions. The proposed framework establishes detailed requirements for eligible collateral, phased implementation schedules, and standardized or quantitative measurement methodologies to mitigate counterparty credit risk. Regulators require all submissions to follow the structured paragraph-by-paragraph format to formally shape the final risk mitigation rules.
Share