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.
Tag: uncleared margin rules
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.
Market volatility sparked by the COVID-19 pandemic has resulted in a significant increase in prime brokers asking for more collateral from hedge funds.
Asset managers receive respite from authorities in implementing the final phase of the uncleared margin rules as coronavirus continues to impact regulation.
Despite the extension to comply with the final phase of the uncleared margin rules, major operational challenges remain for buy-side firms.
Pimco will use OpenGamma’s technology in a bid to reduce margin financing costs for derivatives trading.
Citi has leveraged the ISDA SIMM model to launch a new regulatory margin calculation service for buy-side firms that come into scope from 2020 and 2021.
Counterparties within scope for Phase 4 of initial margin compliance have been onboarded to the AcadiaSoft platform.
Both vendors will combine services for a single collateral platform to help firms meet UMR requirements.
The final phase would have enforced thousands of asset managers, hedge funds and insurers from September 2020.