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APRA opens floor to updated margin requirements

— 1 minute read

APRA has opened a cross-industry consultation for amendments to its margin requirements for non-centrally cleared derivatives.

The changes to Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226) are set to apply to all authorised deposit-taking institutions, general and life insurers and registrable superannuation entity licensees. 

APRA’s proposed revisions accommodate the decision of the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) to delay the final implementation phase for margin requirements by one year to 1 September 2021. 

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The regulator is also proposing other amendments in response to clarifications made by the BCBS and IOSCO. 

It plans to add the UK’s Prudential Regulation Authority and Financial Conduct Authority to the list of foreign bodies eligible for substituted compliance with its margin requirements following Brexit. 

Submissions will close on 28 August. 

 

APRA opens floor to updated margin requirements
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.

You can contact her on [email protected].

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