Coping with uncleared margin rules – the tricks, traps and tools

A unique insight on the evolving UMR strategies of 110 banks and buy-side firms 

Global uncleared margin rules require over-the-counter derivative counterparties to post initial margin against their bilateral trades, subject to certain notional thresholds. With many larger dealers already caught in the net, waves five and six of the rules are expected to pull in increasing numbers of buy-side firms, presenting significant challenges for market participants’ risk and collateral management operations and technological capabilities.

As awareness grows of the complexities ahead, surveyed over 110 in-scope banks and buy-side participants to assess their state of readiness. In this white paper, we:

  • Discuss the potential impact of UMR on portfolios, profitability, strategy and resource
  • Reveal insights from a survey assessing firms’ plans and preparations
  • Highlight key decision stages in best-practice UMR planning  
  • Compare the evolving strategies of in-scope banks and buy-side firms