The BIS Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a final report setting out eight “effective practices” intended to help central counterparties (CCPs) and clearing members (CMs) streamline intraday variation margin (VM) processes in centrally cleared markets and improve the predictability and transparency of VM requirements. The practices provide examples of how CCPs can meet relevant expectations in the CPMI-IOSCO Principles for Financial Market Infrastructures and the 2017 CCP resilience guidance without creating additional standards or assessing current CCP VM practices. They cover: increasing the predictability of intraday VM calls (including through scheduled calls), providing sufficient time to meet intraday calls, offsetting VM against other obligations where feasible, evaluating the feasibility and trade-offs of passing through intraday VM, allowing excess collateral to meet intraday VM obligations where legally and operationally feasible, strengthening CCP-to-CM transparency on triggers, timing and composition of calls, creating structured feedback mechanisms on CCP VM practices, and improving CM-to-client transparency on intraday VM processes. The report reflects survey evidence and consultation feedback on a February 2024 discussion paper, with CPMI-IOSCO noting broad industry support and no changes to the practices as consulted. It forms part of a wider BCBS-CPMI-IOSCO-FSB work programme on margining practices aimed at improving transparency, streamlining margin processes and supporting the liquidity preparedness of market participants for margin calls.
Bank for International Settlements - Committee on Payments and Market Infrastructures 2025-01-15
BIS Committee on Payments and Market Infrastructures and IOSCO publish eight effective practices to streamline variation margin in centrally cleared markets
The Bank for International Settlements’ CPMI and IOSCO published a final report with eight “effective practices” to help central counterparties and clearing members streamline intraday variation margin processes and improve the predictability and transparency of margin requirements in centrally cleared markets. The non-binding practices, unchanged from the consultation and broadly supported by industry, show how existing expectations can be met in areas such as scheduling intraday calls, using excess collateral and enhancing transparency. The report is part of the broader BCBS‑CPMI‑IOSCO‑FSB work programme on margining practices.