We thought you should be aware of a video produced by DRS which describes updates to the ISDA and custodian documentation for UMR. These updates form the 'next generation' of documentation intended to make re-papering for UMR easier for firms going forward. The video is 36 minutes long and includes nice diagrams.
UMR Phase 5 will have a significant capital impact on in-scope firms’ trading performance. To address this impact, firms need to treat it as a trading risk management process and have calculation tools in their front-office trade workflow that provide transparency and control over the impact of IM. Liam Huxley, CEO and Founder and Samuel Hyman, Head of Americas at Cassini Systems,discuss the benefits of pre-trade and intra-day/end-of-day analysis and collateral optimisation as affected firms prepare for the UMR deadline next year.
The replacement of the Interbank Offered Rates (IBORs) will have a major impact on financial services firms around the world, and regulatory agencies are pressuring institutions to begin their transitions to alternate or reformed benchmark rates ahead of a proposed 2021 deadline.
The Fixed Income and Derivatives market is in the midst of fundamental change, as trading migrates away from the phone and onto electronic venues. This move to e-trading has been triggered by the need to capture accurate data and report it to the regulators, combined with the need for liquidity, and the ongoing demand for efficiency gains in the middle- and back-office.
In a recent report, Uncleared Margin Rules and the Rise of Initial Margin Optimization, Aite Group senior analyst Audrey Blater discusses an array of solutions offered to both the buy-side and sell-side to combat rising margin fees.
The lack of a common industry taxonomy has long been a problem for the capital markets in various segments of the market, and the area of cloud technology is no different. Assessing levels of cloud adoption within a firm, let alone across the market, is challenging because not every individual has the same definition of “cloud.” The way vendor solutions or services are marketed and the rather hazy vendor descriptions of various hosting models exacerbate the problem—though a solution is offered as a managed service, that does not necessarily mean it is a cloud-based offering.
This will be a welcome relief for many firms and it’s good to see regulatory bodies listening to the market and taking pragmatic steps to alleviate what could have turned out to be an ugly bottleneck.
Job displacement by automation is already sizable on a per capita basis in the US (concentrated on labour intensive manual work) and the rise of an Asian middle class with the rising wages they demand may have set the time bomb ticking for these trends to be repeated in Asia.