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Navigating UMR phases five and six

As awareness grows of the complexities ahead, a panel discusses best practice, their recent experiences and the challenges in-scope firms face as they prepare to meet UMR

The Panel

Neil Murphy, Business Manager, triResolve, TriOptima
Mark Persiani, Director, BlackRock
Ryan Winnett, Director, Cross-Markets, Collateral Optimisation Unit, and Programme Director for Uncleared Margin Rules, Barclays Investment Bank
Yaron Katz, Head of Risk Operations, Coremont
Craig Pearson, Co-Founder and Director, Margin Tonic
Moderator: Helen Bartholomew, Editor-at-Large, Emea, Risk.net

Since the uncleared margin rules (UMR) went live in 2016, only a small number of market participants – mostly larger banks – have been required to exchange margin on their non-cleared derivatives. By September 2021, it is estimated 1,000 firms – or possibly more – including increasing numbers of buy-side entities, will be subject to UMR for initial margin (IM) in the final phases, five and six.

This presents significant challenges for market participants’ risk, collateral and technology capabilities, and it is essential firms prepare not only for the calculation of IM, but also that they put in places systems and processes to support the monitoring of IM exposure, and the potential exchange and settlement of collateral.
 
As awareness grows of the complexities ahead, a panel discusses best practice, recent experiences and the challenges in-scope firms face as they prepare to meet UMR
 
Topics discussed include:

  • Best practice for UMR planning 
  • How to select an appropriate IM calculation methodology
  • Strategies and lessons learned from in-scope firms 
  • Overcoming operational challenges
  • IM dispute management.
 

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