As the new non-cleared margin rules approach in March , derivatives users must now be working to modify their existing collateral agreements or draft new ones

“Unfortunately, regulators imposed an unrealistic deadline on the marketplace and seem intent on sticking to that deadline regardless of the effect on the health of the market and market participants,” said Giancarlo, who is in line to head the agency once Donald Trump is inaugurated as U.S. president on Jan. 20.

“As the variation margin deadline approaches, I call on my fellow regulators to determine the market’s readiness and help ease the transition as much as possible to ensure the orderly functioning of the marketplace.”

Australia, Hong Kong and Singapore have already said they would allow a six-month phase-in approach from March, but the EU is heading for a hard deadline.

Giancarlo, who was meeting British regulators during his visit to London, said it was too early to know what needs to be done about a deadline that will affect many trades in a cross-border market.

“The concern I have with the March deadline is some of the smaller firms, asset managers and pension funds, may not be able to get their documentation done in time with some of the sell-side firms,” Giancarlo told reporters.

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