Users of OTC derivatives are not prepared for regulatory onslaught

Regulatory requirements expected in the US and Europe will be difficult for buy-side companies to implement. Counterparty credit risk and collateral management for OTC derivatives will be challenging.

The analysis* by BNY Mellon shows what the buy-side needs to do now as well as when expected industry regulatory changes are made. The study focused on the standardisation of over the counter (OTC) derivatives and a migration to central clearing.

Until now industry best practice in this area has cen