The effects of regulations such as UMR and SA-CCR, combined with geo-political pressures, are shifting FX activity on-exchange – widening spreads and creating highly liquid trading conditions, according to the latest data from CME Group.
How have UMR and SA-CCR impacted the FX trading desk and market structure? TradeTech FX panellists explore the consequences of these landmark regulations, and how they might influence other FX products in the future.
Drawing comparisons with some of the most rigorous and pressing regulations in recent memory, Phase 6 of Uncleared Margin Rules is set to hit 1,100 buy-side firms in September. While Q3 might seem a long way off, as ever with regulatory preparations, firms are being urged to act now around controls, documentation, testing and data flows. Wesley Bray looks at the latest round of this regulation and how firms can prepare.
Scott Gold, head of sales for the Americas at BidFX, talks to The TRADE about the urgency of preparations for the final phase of UMR, and what needs to be done to effectively manage risk ahead of the changes.
Collateral and margin management specialist has connected with a significant number of custodians given its relative infancy in the space.
Direct connectivity to the four main tri-party agent firms aims to help asset managers as the next phase of the uncleared margin rules looms.
With less than a month to go, the pressure is on for buy-side firms to finalise documentation and custodial arrangements on their initial margin.
State Street polled 300 buy-side firms and found that less than a fifth were fully ready to comply with UMR from September 2021 or September 2022.
Following a one-year delay to UMR, AcadiaSoft is helping firms test initial margin calculations with a mock go-live program.
Initial margin collected by phase one firms for their non-cleared derivatives totalled $173.2 billion, an increase of 10% compared to year-end 2018.