BCBS-CPMI-IOSCO finalise analysis of margining practices during the March 2020 market turmoil
The Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published the report Review of margining practices. Besides presenting data-driven analysis examining margin calls in March and April 2020 and the extent to which market participants were prepared to meet them, the report recommends further policy work in the following six areas:
- Increasing transparency in centrally cleared markets.
- Enhancing the liquidity preparedness of market participants as well as liquidity disclosures.
- Identifying data gaps in regulatory reporting.
- Streamlining variation margin processes in centrally and non-centrally cleared markets.
- Evaluating the responsiveness of centrally cleared initial margin models to market stresses, with a focus on impacts and implications for CCP resources and the wider financial system.
- Evaluating the responsiveness of non-centrally cleared initial margin models to market stresses.