Streamlining VM processes and IM responsiveness of margin models in non-centrally cleared markets

Consultative report by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO)

This version

BCBS  | 
17 January 2024
Status:  Closed

In September 2022 the BCBS, the BIS Committee on Payments and Market Infrastructures and IOSCO published a Review of margining practices. Today's consultative report articulates the policy analyses work carried out by the BCBS-IOSCO in two areas discussed in that report: (i) exploring the need to streamline variation margin processes in non-centrally cleared markets; and (ii) investigating the responsiveness of initial margin models in non-centrally cleared markets.

This BCBS-IOSCO consultative report sets out eight recommendations to participants in non-centrally cleared markets to encourage the widespread implementation of good market practices related to (i) variation margin processes; and (ii) the responsiveness of initial margin models.

The first four recommendations aim to address challenges that could inhibit a seamless exchange of variation margin during a period of stress. The other four highlight good practices for market participants to smoothly implement initiatives to ensure the calculation of initial margin is consistently adequate for contemporaneous market conditions and proposes that supervisors should monitor whether these developments are sufficient to make this model responsive enough to extreme market shocks.  

The BCBS and IOSCO invite feedback on this consultative report.

Responses should be sent via email to the BCBS Secretariat ( and the IOSCO Secretariat ( by 17 April 2024. Responses will be published on the websites of the BIS and IOSCO unless respondents expressly request otherwise. Commercial or other sensitive information should not be included in the submissions, or may be included, with redactions for publication clearly noted.