Skip to main content
Closed
September 2019

Consultations on Margining and risk mitigration for non-centrally cleared derivatives

This page contains consultations in relation to Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives for all authorised deposit-taking institutions (ADIs), general insurance, life insurance and superannuation APRA-regulated entities. 

Amendments to margin requirements for non-centrally cleared derivatives

Round 2 - September 2019

On 19 September 2019, after a two-week consultation period, APRA released a response to the submissions received on its proposed amendments to margin requirements in Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226). 

The proposed changes will apply to all authorised deposit-taking institutions, general insurers, life insurers and registrable superannuation entity licensees. 

The response to submissions, the final revised version of CPS 226 and the CPS 226 Marked up version can be found below:

Issued 19 September 2019

Issued 19 September 2019

Issued 19 September 2019

Round 1 - August 2019

On 14 August 2019, APRA issued a consultation letter inviting submissions on proposed revisions to the phase-in implementation timeline for initial margin requirements, substituted compliance and other minor amendments. Information on how to respond is contained in the letter. 

Submissions close on 28 August 2019. 

Substituted compliance for margin requirements for non-centrally cleared derivatives 

Final Round - August 2017

On 7 August 2017, APRA published its response to submissions on proposed revisions to permit substituted compliance with respect to the margin requirements or provisions of the foreign bodies listed in CPS 226. APRA also released the final revised version of CPS 226.

 Round 1 - May 2017

On 9 May 2017, APRA issued a consultation letter inviting submissions on proposed revisions to CPS 226 to recognise substituted compliance with respect to the margin requirements or provisions of seven foreign jurisdictions, subject to a condition for intra-group requirements for certain jurisdictions. 

Submissions closed on 6 June 2017. 

 APRA received the following non-confidential submissions:

 Margining and risk mitigation for non-centrally cleared derivatives

December 2016 

On 6 December 2016, APRA issued a letter announcing that CPS 226 will commence on 1 March 2017 with later implementation dates for particular margin requirements. APRA also released an updated version of CPS 226 incorporating the implementation arrangements. 

 Final Round - October 2016

On 17 October 2016, APRA published its response to submissions on the new draft cross-industry Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives. APRA also released the final revised version of CPS 226 without an implementation date.  

The response paper details the more substantive matters raised in submissions and APRA’s responses. 

 

 August 2016

On 22 August 2016, APRA issued a letter announcing that in light of delays in implementation of the internationally-agreed framework in other major derivatives market, APRA is deferring the proposed implementation date of 1 September 2016 for the margin and risk mitigation requirements in CPS 226 and will release a final revised CPS 226 setting out the final margining and risk mitigation requirements in due course without a commencement date.

Round 1 - February 2016  

On 25 February 2016, APRA released for consultation a discussion paper and a new draft cross-industry Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives on APRA’s proposed implementation of the internationally-agreed framework for margin requirements and risk mitigation standards for non-centrally cleared derivatives.

Submissions closed on 20 May 2016. 

 APRA received the following non-confidential submissions: 

 

Note on submissions

It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.