From the desk of Shaun Murray, Managing Director and CEO, Margin Reform
The Uncleared Margin Rules (UMR) which apply to non-centrally cleared derivatives will enter the final two phases of implementation on 1 September 2021 (phase five) and 1 September 2022 (phase six). While the original start dates were recently pushed back by the Basel Committee on Banking Supervision and the Board of the International Organization of Securities Commissions (BCBS-IOSCO), it is essential that the affected firms prepare for the new requirements.
A key consideration is the use of Money Market Funds (MMFs) as eligible collateral in the requirement for simultaneous gross two-way exchange of Initial Margin, pledging this to a segregated account at a third party using either a Tri-Party or Third-Party custodian mechanism.
Read my white paper which presents some of the key issues that the EU's Regulatory Technical Standards offer to those who use MMFs: the types of funds that could be used; how some of the solutions available can be accessed; and how they are likely to operate on a day-to-day basis.
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From the desk of Shaun Murray, Managing Director and CEO, Margin Reform
The Uncleared Margin Rules (UMR) which apply to non-centrally cleared derivatives will enter the final two phases of implementation on 1 September 2021 (phase five) and 1 September 2022 (phase six). While the original start dates were recently pushed back by the Basel Committee on Banking Supervision and the Board of the International Organization of Securities Commissions (BCBS-IOSCO), it is essential that the affected firms prepare for the new requirements.
A key consideration is the use of Money Market Funds (MMFs) as eligible collateral in the requirement for simultaneous gross two-way exchange of Initial Margin, pledging this to a segregated account at a third party using either a Tri-Party or Third-Party custodian mechanism.
Read my white paper which presents some of the key issues that the EU's Regulatory Technical Standards offer to those who use MMFs: the types of funds that could be used; how some of the solutions available can be accessed; and how they are likely to operate on a day-to-day basis.
.
