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Navigating Uncleared Margin Rules

Report: Systematic Strategies

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(CME Group Partner Content) – Since Uncleared Margin Rules (UMR) went live in 2016, only a small number of firms have been impacted by Phases 1-4. But by September 2021, an estimated 1,000+ additional firms will be subject to UMR for initial margin. These firms must get ready to comply with new regulatory initial margin and reporting requirements on non-centrally cleared OTC derivatives.
Initial margin (IM) is collateral posted to help reduce risk exposure to a given counterparty. Posting IM is a new step for many firms trading non-cleared OTC derivatives, and will increase a firm’s costs.

The resources here can help you understand if, when and how your firm will be impacted by UMR for IM in Phases 5 & 6. If your firm is in scope, CME Group offers the broadest set of global solutions to help you overcome UMR challenges. How? By minimizing UMR exposure, easing the burden of daily requirements, and reducing your notional outstanding and IM amounts.

Read the full article here: Navigating Uncleared Margin Rules – Find Capital-Efficient Solutions to UMR Challenges

 

Picture: (c) By-Anikin-Denis—shutterstock.com

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Partner Content from CME Group
Partner Content from CME Group
As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Through its exchanges, CME Group offers the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. CME Group provides electronic trading globally on its CME Globex platform. The company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through its clearinghouse, CME Clearing. CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.

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