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Bilateral Margin

Aussie IM Phase 4 double whammy

Bill: More work for Phase 4 UMR, if we're unlucky.


Opinions obviously vary, but for me there are very few opportunities to be glad not to be Australian. Here is one for already punch-drunk IM lawyers and compliance personnel. The largest four banks in New Zealand are Australian-owned- ANZ, ASB, BNZ and Westpac. New Zealand is not a G20 member and has therefore been (relatively) […]

Video: What is ISDA Create – IM?

Derivatives trading and processing are becoming more automated, but the legal documents that back these trades are still reliant on paper and wet signatures. This slows down the time it takes to negotiate a document, and creates inefficiencies throughout the whole process.

CFTC’s Office of the Chief Economist Issues Report on Initial Margin Phase 5

A new CFTC report examines the number of entities in scope for phase 5 of UMR and the effect of excluded physical FX from the AANA calculations

Getting It Right (Collateral and Custody)

Clearstream’s OTC Collateral service supports buy side customers throughout the entire lifecycle of both cleared and uncleared collateral management, whilst at the same time uniquely enabling full reuse of received collateral for triparty purposes. 

Three Webinars on Uncleared Initial Margin (Legal, Risk & Operations)

Hear from expert speakers on how to prepare for Initial Margin on uncleared OTC business. If your firm might be in scope for 2019 or 2020 then you need to hear these presentations, and get your questions answered.https://cloudmargin.com/understanding-initial-margin/

Takeaways from ISDA and SIFMA’s Paper: Initial Margin for Non-Centrally Cleared Derivatives: Issues for 2019 and 2020

Following on from the CloudMargin "Seven Considerations about Initial Margin" and the ISDA paper, we summarise key points from the ISDA paper which also need consideration.

Seven Considerations about Initial Margin

Through seven key considerations, this paper explores the IM regulations and challenges to be tackled from the perspective of a collateral management and OTC derivatives operations leader. It is designed to help the reader understand what to consider, within a specific timeframe, and how to meet their compliance date across the areas of law, risk, operations and technology.

Initial Margin for Non-Centrally Cleared Derivatives: Issues for 2019 and 2020

In response to the global financial crisis of 2008-2009, the G20 agreed to a financial regulatory reform agenda covering the over-the-counter derivatives markets and market participants, among them recommendations for the implementation of margin requirements for non-centrally cleared derivatives.

Margin Rules and ISDA SIMM

Bill: The PDF provided on the ISDA website examines refinements to the way IM is calculated for uncleared business. It links market size and liquidity to portfolio size and closeout timing to make the amount of IM more proportional to the size and risk in a given portfolio. According to Risk magazine this paper bypassed the ISDA WGMR causing some concern. At the moment the paper is purely academic and isn't a change to SIMM but more a discussion paper for global regulators.

The Battle for IM Margin Documentation Automation Moved Forward

The September 2019 Uncleared Margin deadline (and the 2020 date) will bring many more firms in-scope for exchanging IM. Both ISDA with LinkLaters, A&O with Markit and SmartDX are in the process of launching platforms to dramatically simplify the process of negotiating and implementing the necessary agreements. The A&O platform was announced in April here, we now have a high level description of the ISDA platform in the attached PDF and description below. 

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