FINMA is extending the transitional period for the duty to exchange collateral for non-centrally cleared OTC derivatives transactions that are options on individual equities or index options. This will prevent disadvantages for Swiss derivatives traders.
Due to legal developments in important financial centres, namely in the EU and UK, the transitional periods for exchanging collateral in the case of equity options is being extended by at least two years. Against this background, FINMA is also granting a corresponding deadline extension until 1 January 2026 in order to prevent disadvantages for Swiss derivatives traders.
FINMA had already extended the transitional period for the duty to exchange collateral for non-centrally cleared OTC derivatives transactions that are options on individual equities or index options twice (cf. Guidance 04/2019 of 13 December 2019 and 09/2020 of 19 November 2020). The Federal Council also extended the deadline in the corresponding ordinance to 1 January 2024.
