The Impact Of Margin Requirements On Securitisations That Use OTC Derivatives

The final framework for margin requirements for non-centrally cleared derivatives has been released by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions. The globally agreed standards under the framework require all financial firms and systemically important non-financial entities that engage in non-centrally cleared over-the-counter derivatives to exchange initial and variation margin commensurate with the counterparty risks arising from such transactions.