CFTC signals mitigation mojo

The CFTC is the first Regulator to break cover following the 5 March BCBS\IOSCO IM Phase 5 statement. The outgoing Commission Chairman Giancarlo has released a letter sent to Federal Reserve Board Vice Chairman Randal K. Quarles recommending that US regulators issue guidance echoing the BCBS mitigation. CC’ing the FCA, the BoE and ESMA, he […]

Bill: Firms who hope they might avoid preparing for Phase 5 should follow this topic. IMO this doesn't change anything, if you are above the notional threshold then you need to make full preparations.

EU Japan Billet Doux

Marriage is on the decline in Japan it seems, bucking that particular trend, and as a prelude to the EU-Japan summit, the European Commission decided on the 25 April that Japanese Financial Services Agency (JFSA) rules are equivalent in respect of uncleared transactions. The decision concludes that JFSA rules on the exchange of margin and […]

How liquidity add-ons can impact margin

IM Phase 5 mitigation…’ish

Banks have spent the last four years gamely preparing for and complying with IM regulations. Phases 1-3 have been challenging, the current phase 4 promises more of the same. The market has long been aware that phases 1-4 are mere kittens to the phase 5 (probably angry) tiger. Useful initiatives- negotiation platforms, custodian portals, standardised […]

Lehman case confers clarity on “COB”

Whilst many know of the infamous collapse of Lehman Brothers, not many are aware of how Lehman Brothers helped to clarify important business terms. In a recent dispute between Lehman Brothers (Lehman) and ExxonMobil (Exxon), the High Court was faced with a number of issues, in particular, issues relating to what was meant by ‘close […]

How estimating CCP margins could save you millions

How the hedge fund industry can maximise returns in 2019

Agreement Reached Over EMIR Refit

Hot on the heels of ESMA’s 31 January 2019 ‘blind eye’ statement, on 5 February 2019, the EU Council issued a press release confirming it had reached agreement with the EU Parliament on certain aspects of the EMIR REFIT programme. Broadly, the changes are that: A new category of “small financial counterparty” will be created. […]

Knights (and ladies) of the Roundtable

DRS recently hosted a well-attended IM Breakfast Roundtable at the Gherkin. A distinguished list of panellists included Mayer Brown’s Ed Parker, Margin Reform‘s Chetan Joshi and Bank of New York Mellon’s Mark Higgins. Focused primarily on the imminent challenges of IM Phase 4, participants were drawn from the sellside; the event’s success effectively mandates a […]

Thank FCAUK!!

Heads of Legal Spared Life Under the Senior Managers Regime   On 23 January 2019, the FCA published Consultation Paper CP19/4*** “Optimising the Senior Managers & Certification Regime and feedback to DP16/4 – Overall responsibility and the legal function” (the “Consultation Paper”).  The consultation period closes on 23 April 2019, with a Policy Statement slated […]