While most financial services firms working in derivatives markets would rather skip another round of regulation, they will have to get ready for the Phase 4 and Phase 5 initial margin (IM) deadlines to come — if they haven’t done so already, says Scott Linden, managing director for collateral management at Wilmington Trust.
Linden adds that a key industry group, the International Swaps and Derivatives Association (ISDA), released in April a step-by-step guide to help firms facing these additional margining deadlines. The free guide, “Getting Ready for Initial Margin (IM) Regulatory Requirements: What Steps Do I Need to Take?,” offers eight detailed steps that firms should consider.
“I’m not going to go through all eight but it’s encompassing front office, documentation, technology, operational process, custodian — a myriad of disciplines that need to be involved early on when you look ahead at what the initial margin segregation is going to mean for the Phase 4 and Phase 5 participants,” Linden says.
In his video interview with FTF News, Linen covers other major aspects of these looming, complex IM regulations and rules. He was interviewed during FTF’s derivatives processing conference, DerivOps North America 2018, held during a snowy April in Chicago. Linden also took part in the “The High Cost of Collateral” panel discussion.
CREDITS:
Video Production: Janene Knox and William J. Poznanski, Jr.
Interview conducted by: Eugene Grygo, chief content officer, FTF News
Co-Producers: Sarah Hathaway, vice president, Financial Technologies Forum (FTF) and Eugene Grygo
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