Cassini commissioned Acuiti to conduct a study of how hedge funds were managing margin and collateral in the face of UMR, heightened volatility, and increased scrutiny of risk from prime brokers. Download the report now!
The report showed that:
- There remains significant uncertainty among hedge funds over whether they will be in scope for UMR Phase 6
- This uncertainty is creating a risk for hedge funds that they could be facing significant consequences by coming into scope for UMR late or without sufficient preparation for compliance
- Hedge funds are becoming more sophisticated in terms of how they manage margin and collateral but there is a long way to go still:
– Just 13% aggregate and analyze margin requirements intra-day
– 78% of respondents consider margin when deciding where to trade but most of these only do so some of the time
– 30% of respondents said they had a view of margin implications available to traders pre-trade.
Also in this report:
- What actions have prime brokers taken with regards to their hedge fund clients following the collapse of Archegos Capital Management?
- How have hedge funds changed the number of prime broker relationships?
- What actions are hedge funds taking to mitigate the impact of higher margin requirements?
- What are the top challenges hedge funds face in their collateral operations?
For more information and to download the report, please go here.
