Revisions to the framework for margin requirements for non-centrally cleared derivatives that have been adopted by international groups are the subject of a Wednesday webinar hosted by the federal banking agencies, they announced Monday.
The Federal Deposit Insurance Corp. (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) said they are hosting the one-hour event, which will discuss the revisions adopted by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO).
According to the joint notice issued by the agencies, the webinar will describe legal documentation standards, custodial readiness, and testing for systems related to the $50 million initial margin threshold in the framework.
Additionally, the agencies said that, consistent with the March 5, 2019, BCBS and IOSCO press release, the banking agencies will clarify that banking institutions with total initial margin obligations below $50 million are not required by the agencies’ margin requirements to complete documentation, custodial and operational arrangements, or exchange initial margin.
There is no charge for the webinar, but advance registration is required.