Tuesday October 20 2015
News Source: Global Exchanges
Focus: Derivative Market Segment
Type: General
Country: Canada
Link: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/e22.aspx
The Office of the Superintendent of Financial Institutions (OSFI) has issued a draft version of Guideline E-22, which requires the exchange of margin to secure performance on non-centrally cleared derivatives transactions between covered entities. These margin requirements will mitigate systemic risk in the financial sector as well as promote central clearing of derivatives where practicable. The provisions of this Guideline are consistent with margin requirements issued by the Basel Committee on Banking Supervision (BCBS) and apply to federally-regulated financial institutions (FRFIs) where they meet the definition of a covered entity.
Once the public consultation is complete, comments will be taken into consideration when developing the final version of the Guideline, which will be effective September 1, 2016.
A non-attributed summary of industry comments received along with OSFI’s responses will be posted on OSFI’s website when the final Guideline is released. Comments should be provided no later than November 27, 2015.
Click on the link above for further details.