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 Securities 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 Securities 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 Securities 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 Securities 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."
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