The Alternative Investment Management Association (AIMA) has published a guide to OTC derivatives clearing for its members.
In light of the new regulatory framework emerging in the US and EU – affecting almost all OTC derivatives clearing – the global hedge fund industry association, AIMA, has launched its ‘Guide to Sound Practices for OTC Derivatives Clearing.’
The association - which has over 1,400 members based in over 50 countries, responsible for over US$1.5 trillion in assets under management – produced the guide with the intention of aiding asset managers worldwide adjust to the new legislation. It is accompanied by a due diligence questionnaire for clearing members, designed to advise asset managers throughout their evaluations of different clearing members and houses.
AIMA drafted the guide with assistance from international law firm Simmons & Simmons and the US law firm Seward & Kissel LLP, both papers are sponsored by CME Group and supported by a working group of AIMA’s buy- and sell-side members.
AIMA’s CEO Jack Inglis commented, “These guidelines are unprecedented in detail and scope. We hope they are of use to our member firms as they set out to navigate the increasingly complex legal and operational requirements introduced under the post-crisis OTC derivatives clearing reforms.”
“This initiative underlines our shared commitment to central clearing, which reduces counterparty credit risk and systemic risk, and to the role that we all can play in helping to ensure the smooth and timely implementation of these important regulatory reforms.”