The FSC announced on May 4 a one-year postponement of the implementation of margin requirements for non-centrally cleared OTC derivative transactions to help ease compliance burdens on financial institutions amid the COVID-19 crisis.

► FROM SEPTEMBER 1, 2021: For financial institutions with non-centrally cleared derivatives of KRW70 trillion or more
► FROM SEPTEMBER 1, 2022: For financial institutions with non-centrally cleared derivatives of KRW10 trillion or more and less than KRW70 trillion

The decision is on a par with international standards and is based on a review of financial institutions’ preparedness and opinions from the industry.

In this regard, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) announced their decision on April 3 to extend by one year the final two implementation phases of margin requirements for non-centrally cleared derivatives to help provide additional operational capacity for firms amid the COVID-19 pandemic. Singapore, Canada, Switzerland, Japan and Europe decided to follow the suit.

* Please refer to the attached PDF for details.