EU regulators simplify OTC derivatives margin rules
European regulators have proposed easing rules on bilateral margin requirements for over-the-counter derivatives.
Source: European Securities and Markets Authority · August 12, 2026 at 7:40 PM · AI-assisted report
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KUALA LUMPUR, 13 AUGUST 2026 —
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European regulators have proposed easing rules on bilateral margin requirements for over-the-counter derivatives.
Market Impact
The European Supervisory Authorities said the draft standards, published on Monday, would remove initial margin obligations for counterparties below an €8 billion threshold. Under current rules, firms below the threshold are exempt from posting initial margin for new OTC contracts but must still post for existing ones.
The changes aim to simplify compliance and align with practices in other jurisdictions. The final report has been sent to the European Commission for endorsement, with the standards to be scrutinised by the European Parliament and Council before adoption.