The challenges of Phase 5 of the initial margin of uncleared derivatives include are found across the value chain. This article breaks down each job function, lists its tasks and some tips. A roadmap is included at the end, which shows the big...
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Phase 1-4 are now in place. The increased load for Phase 5 was changed to give in-scope firms more time to complete the processes necessary for compliance. ...
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The Standard Initial Margin for Uncleared Derivatives has been decided. This decision brings derivatives reform to the OTC markets. Such wide-scale changes cannot be understood within each business silo. MHDS' Integrated Training helps firms maximize all of the changes they've made. ...
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APPLES AND ORANGES BASEL III plans to apply the leverage ratio to all collateral, including initial margin on cleared derivatives transactions (cleared at a clearinghouse). Swap Market participants are looking at cost increases estimated at 60%. A decision such as this will mean sell side will...
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WHAT REVISIONS DID THE CFTC PROPOSE & WHY? The CFTC proposed revisions to swaps processing and reporting (Section 21 of the CEA (Commodity Exchange Act). The goals of Dodd-Frank are to make the swaps market transparent, liquid & trackable. The CFTC proposes Identifiers for every swap. ...
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Confusion reigns in the Derivatives World: New terms and acronyms; Swaps Clearinghouses; This cheat sheet will clear up the confusion. ...
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Proposed Margin Rules Last month, US Banking Regulators presented a new proposal for the collection, calculation, and segregation of margin for bilateral derivatives. The new US proposals are quite different from their original 2011 proposal, in light of the BCBS/IOSCO issuance of their 2013 final policy framework on...
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Pre-Onboarding To-Do List There are many tasks that need to be completed to migrate swap positions to a clearinghouse. This article speaks of three items which should be decided and determine whether to onboard the position into a clearinghouse. At a minimum, these tasks will shed...
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Proposed Standardized Initial Margin Method (SIMM) released Monday ISDA proposed a Standard Initial Margin Method for uncleared derivatives. (Read ISDA's proposal for SIMM here.) Standardizing Initial Margin for derivatives makes a lot of sense. Each counterparty has to post the same good faith deposit. Managing the...
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This article speaks about reducing notional by offsetting swaps by using compression. The success we've seen and expect to see as counterparties phase-in to CCP clearing has been a testament to firms working together to get things done. Collapsing Swaps Positions Compression has proven an enormously successful...
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