The Swiss Financial Market Supervisory Authority (FINMA) published guidance extending the transitional period for the exchange of collateral in certain over-the-counter (OTC) derivatives transactions. The current transitional period, which runs until 1 January 2026, will be extended by a further three years. For OTC derivatives not cleared via a central counterparty authorised or recognised by FINMA, counterparties are required to exchange appropriate collateral. FINMA is authorised under Article 131 paragraph 6 of the Financial Market Infrastructure Ordinance (FinMIO) to extend the transitional period for certain OTC derivatives transactions set out in Article 131 paragraph 5bis FinMIO, and has now extended that period until 1 January 2029. The extension is framed as aligning with foreign legal developments, noting that the EU has abolished its transitional period and introduced an indefinite exemption, with the stated aim of avoiding competitive disadvantages for Swiss derivatives traders.
Swiss Financial Market Supervisory Authority (FINMA) 2025-10-09
Swiss Financial Market Supervisory Authority extends collateral exchange transitional period for certain OTC derivatives to 1 January 2029
The Swiss Financial Market Supervisory Authority (FINMA) has extended the transitional period for exchanging collateral in certain over-the-counter (OTC) derivatives transactions by three years, now ending on 1 January 2029. This extension aligns with foreign legal developments, as the EU has abolished its transitional period and introduced an indefinite exemption to prevent competitive disadvantages for Swiss derivatives traders.