Office of the Superintendent of Financial Institutions
In February 2016, OSFI issued the final version of its Margin Requirements for Non-Centrally Cleared Derivatives Guideline (E-22). Under this guideline, most covered federally regulated financial institutions meeting the definition of a covered entity ("covered FRFIs") are subject to the mandatory exchange of variation margin beginning March 1, 2017. In addition, Guideline E-22 requires covered FRFIs to exchange initial margin. The exchange of initial margin began in September 2016 for the largest derivatives counterparties and is being gradually phased-in to smaller counterparties until September 2020.
In March 2019, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) released a statementFootnote 1 related to the margin requirements for non-centrally cleared derivativesFootnote 2:
OSFI supports the BCBS-IOSCO statement and issues the following guidance to FRFIs:
Questions regarding Guideline E-22 should be directed by email to Patrick Tobin, Capital Division at firstname.lastname@example.org.
Press release: BCBS/IOSCO statement on the final implementation phases of the Margin requirements for non-centrally cleared derivatives, March 5, 2019
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Framework: Margin requirements for non-centrally cleared derivatives, March 18, 2015
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Covered entities will act diligently when their exposures approach the threshold to ensure that the relevant arrangements needed are in place if the threshold is exceeded.
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