Initial margin fears are realised
09 October 2013 London
Image: Shutterstock
A recent paper has explored the regulatory drivers for the implementation of initial margin and the challenges that institutions face from a systems, organisational and modelling perspective.
InteDelta, a risk management consultancy, has collaborated with BNP Paribas Â鶹´«Ã½ Services, Lombard Risk and TMX Technologies to produce the whitepaper, titled 'Initial Margin: a commentary on issues for centrally cleared and non-centrally cleared business'. The paper will be released at Fleming Europe 7th annual collateral management forum in Amsterdam.
David Beatrix, business development, market and financing services for BNP Paribas Â鶹´«Ã½ Services, said: "The new rules and practices in relation to initial margins of cleared and bilateral OTCs impose new requirements to financial institutions, both in terms of liquidity and asset protection. As a leading custodian, we continuously develop solutions to help our clients to meet these challenges, keeping a constant focus on risk management."
Michael Bryant, the managing director of InteDelta, added that the introduction of mandatory initial margin requirements is going to have a major impact on institutions for both cleared and non-cleared business.
"Institutions will need to respond by adapting their organisational structure and processes and ensuring they have in place adequate systems, methodologies and policies."
InteDelta, a risk management consultancy, has collaborated with BNP Paribas Â鶹´«Ã½ Services, Lombard Risk and TMX Technologies to produce the whitepaper, titled 'Initial Margin: a commentary on issues for centrally cleared and non-centrally cleared business'. The paper will be released at Fleming Europe 7th annual collateral management forum in Amsterdam.
David Beatrix, business development, market and financing services for BNP Paribas Â鶹´«Ã½ Services, said: "The new rules and practices in relation to initial margins of cleared and bilateral OTCs impose new requirements to financial institutions, both in terms of liquidity and asset protection. As a leading custodian, we continuously develop solutions to help our clients to meet these challenges, keeping a constant focus on risk management."
Michael Bryant, the managing director of InteDelta, added that the introduction of mandatory initial margin requirements is going to have a major impact on institutions for both cleared and non-cleared business.
"Institutions will need to respond by adapting their organisational structure and processes and ensuring they have in place adequate systems, methodologies and policies."
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
