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Derivatives watchdogs are expected to agree a new timeline for the introduction of margin requirements for swaps transactions after strong resistance from the international banking industry, Steven Maijoor, ESMA's chair said, speaking on the sidelines of the Asia Financial Forum in Hong Kong.
An extension to the agreed December 2015 deadline would mark a reprieve for global banks, which have said there is not enough time to do the operational and legal work necessary to implement the post-crisis rules that may add $800 billion to the global financial industry's cost of doing business.
Maijoor said regulators are discussing the timeline within IOSCO, adding it was unclear at this stage if they will agree a new timeline for all or just some margin requirements. "That is part of the ... discussions and we hope within the first quarter of this year we'd get clarity on this," he added.
Keith Noyes, regional director, Asia Pacific, at ISDA, said it would be "supportive of a revised timeline" which would allow banks to transition to the new rules "in a safe and efficient way that minimises market disruption."