The Bank of Russia announced its final position on margining of OTC derivatives

The final report of the Bank of Russia contains a phased approach to the implementation of mandatory margining of non-centrally cleared OTC derivatives. The document was prepared taking into consideration the results of preceding public consultations.

From 1 September 2019 the margining requirements will apply to credit institutions and professional participants in the securities market that are licenced for dealer and/or brokerage activities and/or securities management, as well as organisations that are licenced as management companies for investment funds, unit investment funds, or non-governmental pension funds. From 1 September 2020 these requirements will cover other participants of the derivatives market. In all instances the requirements will apply only to the entities which exceeded certain threshold values for the aggregate month-end notional amount of non-centrally cleared OTC derivatives.

The Bank of Russia also informs that the entry into force of new regulation on central clearing of OTC derivatives has been postponed to the second half of 2018.