On Aug. 14, SK FSS extended validity of OTC derivatives margin guide.
SK FSS said it has extended the validity of the Guidelines for margin exchange for non-clearing OTC derivatives transactions for another year starting from Sep. 2025.
Financial companies whose average notional balance in non-clearing OTC derivatives transactions in end-Mar./Apr./May of each year exceed KRW 10trn subject to the guide.
Except trusts accounts such as collective investment schemes, credit card companies.
For a financial company under a financial group, the combined nominal balance of all financial companies within the same group will be considered for application.
Foreign exchange forward and swap, currency swap (CRS), commodity forward transactions which are settled in real money are not subject to the guidelines.
138 financial companies will be subject to initial margin application, 163 financial companies subject to variable margin application for one year from Sep. 2025.
Future Plans
SK FSS will monitor the status of non-cleared OTC derivatives margin exchanges considering the potential for increased volatility in global financial markets.
Actively support financial institutions' compliance with the margin exchange system.
