BCBS, CPMI and IOSCO survey clients and non-bank intermediaries on margin calls

May 5, 2021

Background
FSB noted that some in the non-bank financial intermediation (NBFI) sector experienced liquidity shock and that increased volatility triggered margin calls, plus a dash for cash. As part of the work program to enhance the resilience of the NBFI sector, G20 agreed that FSB should coordinate with the three Committees to examine issues around margin calls. Margin call work includes both initial and variation margins in derivatives and securities markets. Covers – margin in cleared and uncleared markets during March 2020 turmoil. Margin practice transparency, predictability, volatility across various markets, and models. Market participants’ (especially non-banks) liquidity preparedness for any margin calls.

Survey
The survey focuses on the use of margin calls as part of an examination into liquidity shortfalls during the early stages of the Covid-19 pandemic (March and April 2020). Clients and non-bank intermediaries invited to complete the survey on a voluntary basis. Chance for market participants to feed their views into future policy recommendations.

Effectiveness
Information session to take place on May 6, 2021, to provide context and answer queries. The closing date for responses to the survey is May 17, 2021.

For more information, visit www.bis.org.

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