LONDON (Reuters) - Banking and markets trade bodies have asked regulators to postpone a rule requiring them to post extra cash against their uncleared derivatives transactions as the coronavirus disrupts the industry.
The requirement for an initial margin at the outset of derivatives trades is being phased in over several years with the final two milestones due in September and a year later.
“These efforts are being severely impacted by the global COVID-19 pandemic,” the industry bodies said in a joint letter made public on Thursday. Their members did not believe it was “possible or practicable” to meet requirements for those compliance dates and called for their suspension.
With the full impact of COVID-19 as yet unclear, decisions on a new timeline should be “delayed and reconsidered when relevant facts and circumstances are known,” the letter said.
Reporting by Huw Jones; editing by John Stonestreet