The Non Cleared derivatives margin rules which were based on the BCBS/IOSCO framework went live for the biggest financial institutions as of September 2016, requiring them to exchange both variation and initial margin collateral for their OTC derivative exposures. March 2017 saw other derivative users in US, EU and Japan implementing the variation margin requirements whilst most of the Asian regulators, including Hong Kong and Singapore, have allowed for a 6 month roll out period until September 2017.
The Hong Kong margin rules do not differ materially to other jurisdictions and in summary:
Institutions should ensure that they are already updating their legal agreements (ISDA and CSA) to the agreed regulatory compliant format and are developing their capabilities to calculate and exchange variation and initial margin.
PwC can help you successfully implement those regulatory requirements and advise you on your future operating model, legal agreement planning, model development and validation and integration with third party providers.