The Australian Prudential Regulation Authority has released a consultation paper setting out proposed margin and risk mitigation requirements for regulated entities transacting in non-centrally cleared derivatives.Authorised deposit-taking institutions, general insurers, life insurers and superannuation licensees will have to increase the transparency of bilateral positions between counterparties.Counterparties will be required to exchange margin (collateral) to mitigate credit risk associated with their derivative activities, when the level of activity exceeds minimum qualifying levels.APRA said only a small number of institutions would exceed the proposed minimum qualifying levels and be subject to the margin requirements.It said its proposals followed internationally agreed standards, although it has modified them to avoid placing undue cost on regulated entities with relatively small levels of non-centrally cleared derivative activity.