Drop margin on swaps leaving Libor, Basel says

Joined by Iosco, Basel says moves to Libor successors should not be saddled with margin requirements

Industry participants welcomed the Basel Committee's statement

Legacy Libor contracts being transitioned to new benchmarks should not have to meet margin requirements, two international regulatory standards bodies said on March 5.

The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (BCBS-Iosco) released a joint notice detailing their recommendations, which go against rules set in the aftermath of the 2008 financial crisis.

The two said any changes made to legacy derivative contracts “solely for the