Regulators relax margin requirements for non-centrally cleared derivatives

International standard-setters have pulled back from reforms for the second time as tight liquidity conditions and poor economic growth prospects continue to influence the regulatory agenda. In January, the Basel Committee introduced less onerous rules on the Liquidity Coverage Ratio (LCR) and delayed its implementation date.[1] Mervyn King, the chairman of the LCR rule-setting committee, asserted that it is not optimal ‘to impose a requirement on banks that might damage the recovery’.[2]