Margin rules BCBS 239

Since 1 September 2016, new initial margin (IM) and variation margin (VM) requirements for non-centrally cleared over-the-counter (OTC) derivatives have been introduced and applied to jurisdictions globally.

These new margin rules originate from a global policy framework and timetable that was published by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (BCBS-IOSCO). They are a key part of the reform agenda put in place by the Group of Twenty (G20) as a response to the 2008 financial crisis and seek to reduce systemic risk in the non-centrally cleared OTC derivatives markets by ensuring appropriate collateral is available to offset losses caused by the default of a counterparty.

Important: Although the implementing jurisdictions' margin rules are based on the same global policy framework there will invariably be differences in each jurisdiction's requirements (see the Jurisdictions tab for more detail).