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 […]

Clearing Incentives, Systemic Risk and Margin Requirements

Central clearing of standardized derivatives and margin requirements for non-cleared derivatives are two of the basic tenets of global financial regulatory reform. They are also inter-related: the purpose of margin requirements is to both reduce systemic risk and promote or incentivize central clearing.

Recent studies and research into clearing incentives and margining raise questions about whether certain aspects of the requirements do in fact support these key policy goals. These questions include:

U.S Hedge Funds can save millions as new rules threaten cost escalation

Hedge funds facing perplexing regulations can make significant margin savings. According to our new findings, a hedge fund moving 10 positions between dealers can save a huge 25% in initial margin – which equates to hundreds of millions of dollars. These savings free assets for fund managers to scale up positions to drive additional returns. The findings will come as welcome […]

Guide: How you can reduce your initial margin by 70% under uncleared margin rules

Charles River Forms Business Alliance with Cassini Systems to Automate Margin Estimation

ISDA Chairman Eric Litvack’s Remarks at ISDA Europe Conference, London

ISDA Europe Regional Conference

September 26, 2018

Chairman’s Remarks – Eric Litvack

Good morning.

The timing of this conference means that, in recent days and weeks, you will have seen and heard a great deal of retrospective analysis on the financial crisis. Ten years ago, the markets were in a very uncertain place. Lehman had just gone under, triggering a shockwave that turned what had until then been a gradually building credit crisis into a full-blown financial panic.

ISDA CEO Scott O’Malia Opening Remarks at ISDA Europe Conference, London

ISDA Europe Regional Conference

September 26, 2018

CEO Opening Remarks – Scott O’Malia

Good morning, everyone.

The more observant among you may well have noticed that one of the images in our opening sequence was Lord’s Cricket Ground. Now, Lord’s is close to where I live. And for the past couple of years, I’ve watched as huge crowds have trudged to the ground for big games, some dressed in their colorful red and gold ties or blazers, and wondered what all the fuss is about.

Joint Trades Final Stages of Initial Margin Phase-In Comment Letter

The final phases of uncleared margin rules (UMR) implementation present serious logistical challenges. In-scope market participants face a number of major hurdles, which are exacerbated given the number of counterparties expected to come into scope. These include large scale efforts to re-document every bilateral relationship in accordance with UMR, operationally set up third-party segregated accounts and adopt IM modeling to minimize the dispute resolution process, among other key tasks.

Clearing vs Uncleared Margin Rules

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