Category: Risk Management
Published: 07 February 2017
The introduction of margin rules for non-cleared OTC derivative trades beginning in September 2016 challenges the status quo. Firms trading OTC derivatives will be required to calculate and exchange collateral daily and do so with zero thresholds.
Margin call volumes are set to balloon, and counterparties could see four margin calls per relationship where one call was the norm.
This white paper outlines the basic building blocks for good collateral management and addresses the impact of new regulation on collateral management. The paper further provides a solution to help organisations adapt to the new regulatory reality.