The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) have released the final framework for margin requirements for non-centrally cleared derivatives. Under the globally agreed standards, all financial firms and systemically important non-financial entities that engage in non-centrally cleared derivatives will have to exchange initial and variation margin commensurate with the counterparty risks arising from such transactions. The framework has been designed to reduce system risks related to over-the-counter (OTC) derivatives markets, as well as provide firms with appropriate incentives for central clearing while managing the overall liquidity impact of the requirements.