UK offers six-month margin reprieve for China netting sweep
Transition period falls short of Isda’s 18-month request, Hong Kong mulls similar relief
UK regulators are consulting on proposals that would give Chinese counterparties an additional six months to comply with non-cleared margin rules when the country’s close-out netting opinion is finalised later this year, causing an existing exemption to evaporate.
While the consultation – published by the Prudential Regulation Authority and Financial Conduct Authority – has been welcomed, the relief falls short of an 18-month grace period requested by the International Swaps and Derivatives
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