Office of the Superintendent of Financial Institutions
OTTAWA ─ February 29, 2016 ─ Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI) today released a final version of Guideline E-22 Margin Requirements for Non-Centrally Cleared Derivatives. This Guideline establishes minimum standards for margin requirements for non-centrally cleared derivative transactions undertaken by federally regulated financial institutions (FRFIs). This guidance aims to mitigate systemic risk in the financial sector and promote central clearing of derivatives where practicable.
In March 2015, the Basel Committee on Banking Supervision (BCBS) and the Board of the International Organization of Securities Commissions (IOSCO) issued a framework on Margin requirements for non-centrally cleared derivatives, which will come into effect on September 1, 2016. OSFI’s Guideline is based on this international framework, and supports the policy’s financial stability objectives while recognizing Canada’s place in the global market. The Guideline considers the size, nature and complexity of FRFIs, specifically small and medium-sized institutions with non-material exposure.
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
OSFI – Public Affairs