Initial margin – Special report 2019

The initial margin (IM) ‘big bang’ may have been reined in by last-minute relief, but dealers aiming to get hundreds of buy-side firms over the documentation finish line by September 1, 2020 fear a compliance bottleneck.

Regulatory recommendations issued in July split the final phase of compliance with non-cleared margin rules in two. Firms with more than €50 billion in aggregate average notional amounts (AANA) of bilateral derivatives remain in phase five, while those with AANA down to €8 billion are part of a new sixth phase, scheduled for September 2021.

Deadlines have a knack of creeping up quickly. Custodians slapped a June date for account applications on earlier phases. For phase five, there’s talk of an earlier deadline to wade through the rush of cumbersome know-your-customer checks. That’s yet to be decided but, if there’s any chance of avoiding a bottleneck, a preparation big bang will be required in the new year.

 

Download the full 2019 Initial margin special report in PDF format

  • LinkedIn  
  • Save this article
  • Print this page  
Initial margin – A regulatory bottleneck

With the recent announcement of an extended preparation period for those smaller entities needing to post initial margin under the uncleared margin rules, the new timetable could cause a bottleneck for firms busy repapering derivatives contracts linked…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: