Uncleared Margin Rules (UMR) phase 5

A Euroclear Bank solution

The Uncleared Margin Rules (UMR) have already re-shaped the OTC Derivatives market with all impacted sell-side banks and broker-dealers opting to use a triparty collateral management solution to address their margining needs.

UMR phases 5 & 6 will introduce more and more buy-side firms to the world of Regulatory Initial Margin (Reg IM). Reg IM takes the form of collateral posted to help reduce risk to a given counterparty.

The technological infrastructure that supports the posting and receiving of Reg IM is both complex and costly to develop and maintain. The legal burden of setting up the necessary contractual documentation with each and every counterparty will be time-consuming and involve a level of risk that many buy-side firms will be unwilling to assume.

Although some of the newly in-scope entities will have the necessary resources to manage Reg IM, they are unlikely to have access to the necessary triparty collateral management services that will help facilitate efficient operations.

Euroclear Bank solution

To support the industry in this transition, Euroclear Bank has designed two key solutions:

Allowing the buy-side to easily receive collateral within the proven infrastructure.

Collateral Portfolio service

Allowing both buy-side and sell-side firms to easily and efficiently deliver collateral to meet their Reg IM obligations more efficiently.

Find out more about UMR phase 5


Olivier de Schaetzen

Head of Product Solutions - Collateral Management


Gösta Feige

Director, Product Solutions - Collateral Management


Simon Mees

Product Solutions - Collateral Management