meta_id 3232099

On May 27, 2026, Iceland's Central Bank (Seðlabanki Íslands) published regulations implementing European Union rules on derivatives trading, central counterparties, and trade repositories. The regulations, which take effect immediately, replace previous regulations numbered 260/2025 on the same subject matter. The new regulations transpose multiple European Commission delegated and implementing regulations into Icelandic law, establishing technical standards for over-the-counter (OTC) derivatives markets. The rules establish requirements for central clearing obligations, trade repository reporting, collateral management, and risk mitigation procedures for non-centrally cleared OTC derivatives. The regulations specify capital requirements for central counterparties, governance standards for market participants, and operational procedures for trade repositories to collect, compare, and provide access to derivatives data. The regulations apply to financial institutions including credit institutions, investment firms, insurance companies, pension funds, and alternative investment fund managers operating in Iceland's derivatives markets. The Central Bank serves as the competent authority for supervision and enforcement. The regulations incorporate technical standards addressing counterparty risk management, margin requirements, initial and variation margin procedures, default fund contributions, liquidity risk monitoring, and payment prioritisation in default scenarios. Additionally, the rules establish procedures for model review, stress testing, and backtesting, along with requirements for position reporting and data integrity verification by trade repositories. The regulations reference Iceland's Law No. 15/2018 on derivatives trading, central counterparties, and trade repositories as the enabling legislation. The Central Bank designated Björk Sigurgísladóttir as deputy central bank governor for financial supervision and Linda Kolbrún Björgvinsdóttir as chief executive to oversee implementation. **Reference:** Official Gazette (Stjórnartíðindi), Regulation No. 666/2026, published June 11, 2026