Regulators in Australia, Hong Kong and Singapore have joined their European counterparts in delaying collateral requirements for non-cleared OTC derivatives.
The Monetary Authority of Singapore (MAS) and the Australian Prudential Regulation Authority (APRA) both released a statement that they would delay the initial margin requirements that were set to come into force on 1 September.
“In light of delays in implementation of the internationally-agreed framework in other major derivative markets, APRA has reconsidered the timeline for Australian implementation, and concluded that deferring the implementation of the margin and risk mitigation requirements,” said the APRA in the statement.
MAS stated it had consulted with the Hong Kong Monetary Authority (HKMA) to delay implementation of the rules in order to “avoid unintended disruptions to financial markets.”
However both regulators did not state how long the requirements will be delayed for.
Earlier this year, the European Commission confirmed it will delay the rules until the end of the year.
The delay means that just the US and Japan will go ahead with the originally-scheduled September implementation date, a move which could create potential conflicts over harmonisation of the rules.