Are we facing a Collateral Crunch?

A recent industry article in risk magazine suggested that the buy side hopes to retreat to the usage of “dirty CSA” as we face a collateral crunch.   In addition, we have seen the CME extend its collateral eligibility criteria to include short-term UST ETFs (exchange-traded funds) for Initial Margin purposes.  Why? What is going on?  Read More

What Financial Markets Can Learn From Formula One

Drivers catapult around corners at 140mph and scream down straights at 200 with their backsides only a few inches from the tarmac. To say they are super-human, and put their lives in the hands of mechanical engineers, data engineers, and their own split-second decision making, is an understatement. How do F1 teams push the boundariesRead More

HQLAˣ Conference 2022 – Margin Solutions

I was recently invited to attend the second HQLAᵡ conference at the Goldman Sachs offices in London and to be a panel moderator for the ‘Margin Solutions’ panel. I was gifted a fantastic panel of contributors and we were charged with considering industry solutions for Margin and Collateral including DLT, tokenisation and how the pathRead More

The end of the PSA clearing exemption – the Clearing Advantage

Since our blog of the 25th March the European Commission has announced that the Pension Scheme Arrangements (PSAs) temporary exemption from clearing will end in June 2023. The original exemption was introduced ten years ago in 2012. After multiple extensions, the countdown has finally begun.  If you are a Pension scheme which is  unsure aboutRead More

Where Next for Eurozone Clearing?

In November 2021, the European Commission (“EC”) announced the EU’s proposed way forward for central clearing in the post-Brexit world. The EC considers the over-reliance on UK-based central counter-parties (“CCPs”) for some clearing activities as a source of financial stability risk in the medium term, which requires mitigation. Specifically, the EC has identified the followingRead More

UMR Survey Q4 2020 – Variation Margin

As part of Margin Reform’s ongoing strategy to support and influence the financial services industry, we joined forces with Institutional Investor to complete an industry temperature check during Q4 2020 on Uncleared Margin Rules (UMR) to assess industry readiness and inform project delivery programmes. Each week we will share the anonymous results to give youRead More

It’s automation, not automagic!

At Margin Reform, we recently held our second webinar with Scott Brown of Pirum Systems LTD and Nicholas Larrieu of DTCC Europe Limited. During the webinar, we went through many aspects, some of which I have summarised here.  We started with the successful launch of SFTR and went on to review the challenges this willRead More

How To Better Optimise Your Clearing Services

The current pace with which regulatory change is taking place can be overwhelming to buy-side firms. Furthermore, factor in that for firms who have not yet reached a certain size or don’t have the capabilities and systems, they will lack the right infrastructure to clear derivatives (OTC or ETD) or securities financing transactions (Repos) atRead More

5 Alarming Things You Must Know Before Starting A UMR project (#4 be warned)

Are you comfortable with the intricacies of the Uncleared Margin Rules (UMR)? Getting ready and maintaining regulatory compliance to UMR can be challenging. At Margin Reform, we have summarised all the essential steps into our UMR ‘Wheel of Pain’. In this article, we will cover the five things you should prioritise. AANA Calculations with Self-Disclosure LetterRead More

They’ve extended UMR, again. What can you solve now?

My colleague Shaun Murray and I recently hosted a webinar on how firms can benefit from and capitalise on the additional time the UMR (Uncleared Margin Rules) extension allows. The one-year extension proposed by BCBS-IOSCO has been supported for the final two implementation phases of the margin requirements by each regulatory jurisdiction. During the webinar,Read More