Final European OTC Derivatives Margin Rule Frequently Asked Questions On 4 October, 2016, the European Commission published its Final Draft Regulatory Technical Standards on margin for derivatives that are not centrally cleared (“OTC Margin Rule”). The OTC Margin Rule, which is arguably the most significant of the derivative risk mitigation rules introduced under EMIR, requires financial counterparties (“FCs”) and non-financial counterparties that exceed specific thresholds (“NFC+s” and together with FCs, “Impacted Entities”) to exchange collateral in respect of their uncleared over-the-counter derivative transactions. The OTC Margin Rule does not require banks to impose margin requirements on nonfinancial counterparties whose volume of non-hedging derivative transactions are below the clearing threshold (“NFC-s”). The requirements will be phased in beginning in early 2017 and ending 1 September, 2020, giving market participants some time to prepare for the changes.

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Frequently Asked Questions About Derivatives and End Users February 8, 2011 Covering topics from market and product basics, to end users and Title VII of the Dodd-Frank and rulemaking, this frequently asked questions guide is an easy to understand document on derivatives and how they are used by businesses today. Download Complete Article

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