On September 1, the Financial Supervisory Service (FSS) of Korea published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions. The guidelines extend the temporary exemption for equity options from the margin requirements until August 31, 2027.
ISDA previously submitted a response to the FSS, setting out comments and recommendations on the guidelines. In its submission, ISDA requested a permanent exemption, or alternatively a further extension of the current derogation, for equity options. ISDA also sought clarification that initial margin (IM) requirements cease to apply to both existing and new derivatives transactions once a counterparty falls below the applicable AANA threshold.
Documents (1) for Korea – FSS published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions
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