In June this year, the Financial Sector Conduct Authority (the FSCA) and the Prudential Authority (the PA) published Joint Standard 2 of 2020 which sets out the Margin Requirements for non-centrally cleared over-the-counter (OTC) derivative transactions (Joint Standard). The key objectives of the Joint Standard are to strengthen regulations surrounding OTC derivatives trading and to impose robust collateral requirements on uncleared derivatives transactions. The margin requirements for uncleared derivatives transactions, as set out in the Joint Standard, are summarised in more detail below. The Joint Standard will come into effect on a date still to be determined.
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