South Korea: Margin requirements for non-centrally cleared derivatives
The Financial Services Commission (FSC) has postponed implementation of margin requirements for non-centrally cleared derivatives by one year.
The postponement, noted the FSC, is aimed at easing compliance burdens on South Korea-based financial institutions due to the COVID-19 pandemic.
In April, both Canada and Australia similarly extended their implementation timelines by one year. Singapore also did the same.
Following the FSC postponement, the new implementation dates will be as follows:
i) September 1, 2020: for financial institutions with non-centrally cleared derivatives of KRW70 trillion or more.
ii) September 1, 2021: for financial institutions with non-centrally cleared derivatives of KRW10 trillion or more and less than KRW70 trillion.
The new dates, including those of the other jurisdictions, align with an earlier release of the Basel Committee on Banking Supervision and the International Organization of Securities Commissions on implementation.
Additional details are available here.
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