By Scott Fitzpatrick, AcadiaSoft

When Phases 5 and 6 of the uncleared margin rules (UMR) begin in September 2021 and September 2022, respectively, a number of firms will not yet be required to calculate initial margin (IM), as firms under 50 billion (Phase 5) or 8 billion (Phase 6) in Average Aggregate Notional Amount (AANA) will be exempt from UMR compliance. Furthermore, firms that do fall into either of the last remaining phases, are not required to become operationally ready until they cross the 50 million IM threshold.

But firms that don’t need to become operationally ready in September (or even next September) shouldn’t relax and ignore the regulatory requirement. While a firm may not need to negotiate Reg IM CSAs or put custody accounts in place just yet, there is still a great deal of pre-planning involved.

AcadiaSoft prides itself on having extensive experience in helping bring firms into compliance with UMR in the most affordable manner possible.

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