What you need to know about Prisma’s TEA component

2 New Year’s resolutions which will save your firm millions

Everyone knows that January is the month of New Year’s resolutions – so why not set some for work as well as home? To help you get started, we’ve come up with two resolutions that will help you better manage your trading costs and see a greater return in 2019: 1. Dedicate time to reducing your margin costs New Year’s […]

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Winter is coming…

excellent post on UMR from DRS - a must read for any firm who might be in Phase 4 or 5. Bill

Rising to the repapering challenges of IM Phases 4 and 5   Introduction The deadline for compliance with Phase 4 and Phase 5 of the IM requirements is miles away, isn’t it?  Isn’t it…? The truth is that, whether you like it or not, the clock is already ticking.  Whether anyone has told you or […]

What makes your initial margin volatile?

If you run a ‘buy and hold’ strategy you don’t expect your initial margin requirement to change much. You would even hope that margin would progressively fall over time as the duration decreases. But, this isn’t always the case…sometimes you will see big step changes in margin that can be as much as 100% –  a lot of potential capital to […]

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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) […]

CFTC nod and a wink for IM phase 5 depopulation

The CFTC’s Office of the Chief Economist (OCE) has responded to industry petitions to mitigate the widely-forecasted IM Phase 5 oncoming storm. Readers will recall the July 2018 ISDA/SIFMA white paper previewing the phase 5 population explosion and recommending various reduction strategies: • Raising the in-scope AANA threshold from $8bn. to $100bn. • Postponing mandatory […]

Forget the headlines: What you really should know about the nasdaq default

You’ve probably seen the headlines about the trader who blew ‘€100m hole in Nasdaq’s Nordic power market’. This was a timely reminder of the potential impact of market defaults, coming as it did 10 years after the failure of Lehman Brothers. Every clearing house member rightly worries about their contribution to the mutual default fund being used to cover losses […]

Brexit – Contractual Dis-Continuity

A long and comprehensive post from DRS on Brexit and the OTC market, follow the link below.

A question that has been ignored, until very recently, is how firms will deal with cross-border derivative contracts when the UK leaves the EU in March 2019. Leaving the single market without either EEA membership or a trade agreement covering financial services, will result in complications for existing derivative contracts. With approximately £26 trillion of outstanding […]

Clearing vs Uncleared Margin Rules

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ISDA presses the panic button on IM

As market participants are all too aware, following the financial crisis in 2008-2009, G20 agreed to a regulatory reform agenda covering the OTC derivatives market and market participants, including proposals for margin requirements for non-centrally cleared derivatives. The recommendations were finalised in the BCBS-IOSCO’s Final Framework for Non-Centrally Cleared Derivatives, which established the international standards […]


Click the link below for the full article - useful in parallel to our earlier papers and the one from ISDA. Bill.