IOSCO issues statement on variation margin implementation

The International Organization of Securities Commissions (IOSCO) has issued a statement acknowledging the challenges facing some market participants working to complete the necessary documentation and processes to be in full compliance with variation margin requirements, which are scheduled to take effect by 1 March 2017 in accordance with minimum standards established by IOSCO and the Basel Committee on Banking Supervision (BCBS) and implemented under domestic laws in various jurisdictions. While reaffirming its commitment to implementation of the margin requirements by 1 March 2017, the IOSCO Board believes that relevant IOSCO members, to the extent permitted by their relevant legal and supervisory frameworks, should consider taking appropriate measures available to them to ensure fair and orderly markets during the introduction and application of such variation margin requirements.