BCBS鈥檚 deadline extension should not 鈥榮low down鈥� preparations
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BCBS鈥檚 deadline extension should not 鈥榮low down鈥� preparations 24 July 2019London Reporter: Maddie Saghir
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The delay to implement initial margin rules should not cause market participants to slow down their preparations, according to John Straley, executive director, co-COO, DTCC Euroclear GlobalCollateral.
This follows the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commission's decision to extend the deadline to
Straley highlighted that regulators recognise the degree of change the industry had to overcome and worked with market participants to agree on a revised compliance timeframe.
According to Staley, firms should establish whether they are in scope and if so, they should act on the steps necessary to meet the new September 2020 or 2021 deadline.
He commented: 鈥淭his new paradigm, for a significant number of the 'in-scope' firms, will require for the first time the development of third party operational and control processes to manage collateral and data.鈥�
鈥淭his effort needs to start as soon as possible as there are many steps required in order to be compliance-ready. Even with a one year delay, firms will encounter significant challenges in meeting the new deadline."
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