From The Trade, January 17:
The proposal has set out eight suggestions to encourage the widespread adoption of good market practices as well as enhancing the resilience of central clearing systems.
BIS committees have teamed up to share collective insights on initial margin calculations and future requirements for centrally cleared transactions.
The Basel Committee on Banking Supervision (BCBS), International Organisation of Securities Commissions (IOSCO), and the Committee on Payments and Markets Infrastructure (CPMI) from the Bank for International Settlements have put together eight suggestions to enhance the resilience of central clearing systems.
The report, titled ‘Transparency and Responsiveness of Initial Margin in Centrally Cleared Markets: Review and Policy Proposals’ builds on a previous publication, the BCBS-CPMI-IOSCO Review of Margining Practices, from September 2022.
The first four recommendations tackle challenges during stressful periods that might disrupt the smooth exchange of variation margin. Firstly, the paper suggests, banks and market intermediaries should actively tackle operational and legal hurdles that could hinder the smooth exchange of margin and collateral calls during stress periods....
....MUCH MORE
Calling BIS proposals "suggestions" seems akin to calling The Ten Commandments "the 10 suggestions." (old ethics joke, also repurposed by Ben Bernanke)
Earlier today from The Trade: "Open outcry: A renaissance?"
