PRA and FCA consult on bilateral margin requirements for uncleared derivatives

The Prudential Regulation Authority and FCA have launched a joint consultation on amending certain onshored Technical Standards. These relate to margin requirements for non-centrally cleared derivatives.

We propose introducing or extending exemptions for some products subject to bilateral margining requirements. We also want to align implementation phases and thresholds of the initial margin requirements to international standards.

Our proposals aim to maintain current market practice and give firms legal clarity on these margin requirements.

We want to know what you think. Our consultation is open for 10 weeks, closing on Wednesday 19 May 2021.