Response to deferral of UMR future phases

‍ Deferral of Uncleared Margin Rules for Phases 5 &6

On Friday April 3rd The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) issued a notice to defer the last phases of the non-cleared margin requirements due to the significant challenges COVID-19 is having on the financial community.

The Committee and IOSCO have agreed to move Phase 5 from Sept 1 2020 to Sept 1 2021 and move Phase 6 from Sept 1 2021 to Sept 1 2022. The recommendation now must move to the local regulatory jurisdictions for approval and it is expected that all jurisdictions will adopt the measures.

AcadiaSoft continues to monitor these events as they are unfolding to ensure our clients and partners are aware of the effects these delays will have on their compliance timelines and obligations. A one year delay for Phase 5 and 6 is no doubt a welcome sign during this time of uncertainty.

We do however believe this is an opportunity for those firms effected by this delay to use it as a tool to move towards your compliance timeline in a less hurried pace, but continue on as there will no doubt many challenges along the way even with additional time. If your firm was ahead of the standard industry development and testing timeline don’t drop the work – continue at a more measured pace. If you were behind the standard timeline – take full advantage to catch up.

AcadiaSoft is here, as always, to help guide you through these challenges through our working groups and provide all the tools needed to ensure you will save time and money in your UMR compliance journey.

To stay abreast of all of the latest industry developments or to learn more about how AcadiaSoft can help with your UMR compliance needs please visit us at acadia.inc or e-mail us [email protected]. Join our regular Phase 5 & 6 working groups to discuss challenges and solutions with your industry peers to ensure your project work maintains momentum.