With phase 3 of the new margin rules for BCBS/IOSCO OTC non-cleared derivatives deadline coming up this September, many market participants are gearing up their collateral management operations to comply with these new initial margin (IM) requirements. For the firms who fall under the phase 3 requirement, the use of the newly updated common initial margin calculation methodology, the Standard Initial Margin Model (SIMM) may be a key part of their implementation strategy and change plans.
In a webinar, derivatives market participants will explore the typical operational and organisational challenges phase 3 and 4 firms will face as they prepare for complying with IM requirements and discuss the nuances of the recently updated SIMM and how this can assist firms in implementing necessary collateral management changes.
The panel will review the following topics:
– Status quo – where are we now with the non-cleared margin requirements? How many firms currently use SIMM and are already compliant today?
– Challenges and lessons learned – what are some of the operational challenges firms can expect surrounding areas such as reconciliation and disputes, curve construction, back-testing? What lessons can phase 3 and 4 firms learn from those who have already met the margin rules?
– SIMM 2.0 – There were considerable changes between SIMM 1.0 and 2.0. Can we expect more modest changes in the SIMM methodology in future? How important is it to build some flexibility into your system managing SIMM?
– Funding – Are there observable consequences from the Initial Margin funding impact?
– Implementation strategies – will implementation plans change due to SIMM? What role does technology play in successful implementation of changes to support new margin rules? Are there longer-term benefits firms can achieve depending on their implementation strategy?
– What’s next – what should the market be focused on next and beyond the next phases of margin rules?
Farid Rahba, Head of Product Management, Collateral Management Solutions, Murex
Shaun Murray, Managing Director, Head of Strategic Collateral Management, Standard Chartered Bank
Nnamdi Okaeme, Director in the Risk and Capital Group, ISDA