Regulatory Alerts2023-02-01
Added · Updated
Joint Standard 2 of 2020 Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions
The Financial Sector Conduct Authority and Prudential Authority have issued Joint Standard 2 of 2020 to mandate margin requirements for non-centrally cleared over-the-counter derivative transactions. Providers must calculate and exchange initial and variation margin based on counterparty credit risk exposure, subject to phased implementation thresholds that scale from R30 trillion down to a permanent R100 billion limit. The standard applies to intra-group and cross-border transactions, excludes sovereigns and central banks, and requires robust risk management frameworks, legally enforceable netting agreements, and clear dispute resolution protocols.
More like this from FSCA
We email you every new FSCA publication the day it's published.