IOSCO has published a consultative paper on margin requirements for non-centrally-cleared derivatives. In 2009, the G20 Leaders initiated a reform programme to reduce the systemic risk of over-the-counter (OTC) derivatives markets. In particular, a number of measures were agreed to enhance the transparency and regulation of OTC derivatives, including mandatory central clearing. However, mandatory clearing requirements will capture only standardised OTC derivatives. Non-standardised products will thus continue to be non-centrally cleared and will remain subject to bilateral counterparty risk management. In 2011, the G20 Leaders agreed to add margin requirements on non-centrally- cleared derivatives to the reform programme. These requirements can further mitigate systemic risk in the derivatives markets. In addition, they can encourage standardisation and promote central clearing of derivatives by reflecting the generally higher risk of non-centrally-cleared derivatives. The consultative paper published today lays out a set of high-level principles on margining practices and treatment of collateral, and proposes margin requirements for non-centrally- cleared derivatives. These policy proposals are articulated through a set of key principles that primarily seek to ensure that appropriate margining practices will be established for all non- centrally-cleared OTC derivative transactions. These principles will apply to all transactions that involve either financial firms or systemically important non- financial entities.