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.
Whether you're looking for a solution to meet your Reg IM obligations as a pledgee and receive Reg IM collateral from your sell-side counterparties, or as a service provider looking to complement your existing third-party offering with a state-of-the art triparty collateral management solution - Euroclear Bank has a solution to fit your needs.
