In response to the April 3 announcement that implementation of the final two phases of the UMR has been delayed by one year, DTCC’s John Straley, Executive Director of Institutional Trade Processing, said:
“DTCC supports the decision by the Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions (IOSCO) to delay the implementation of the final two phases of the uncleared margin rules (UMR) for non-centrally cleared derivatives by one year as a result of the Covid-19 pandemic. Covid-19 is an industry-wide challenge and the additional time provided by the UMR delay will be welcomed by industry participants as they focus resources on managing risks associated with current market volatility in conjunction with future regulatory requirements.”
UMR requires firms using over-the-counter derivatives to post margin on those transactions. With this extension, the final implementation phase will take place on September 1, 2022.
To learn more about how our Margin Transit Utility (MTU) service reduces risk by standardizing and automating the margin process, visit: dtcc.com/mtu