The European Supervisory Authorities (ESAs) have jointly published a draft Delegated Regulation containing regulatory technical standards (RTS) amending EMIR with regard to physically settled foreign exchange (FX) forwards. The draft RTS amend the risk mitigation techniques related to the exchange of collateral to cover exposures arising from non-centrally cleared over-the-counter derivatives with respect to physically settled FX forwards. The amendments are designed to align the treatment of variation margin for physically settled FX forwards with the supervisory guidance applicable in other key jurisdictions. The Delegated Regulation will enter into force on the day following its publication in the Official Journal of the EU.

View ESAs publish final draft technical standards amending margin requirements for non-centrally cleared OTC derivatives, 19 December 2017