As you may know, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) on Friday announced plans to delay by one year the final two implementation phases (5 and 6) of the Uncleared Margin Rules (UMR) for non-cleared derivatives trading, due to challenges posed by the COVID-19 crisis. The final global phase-in periods for regulatory Initial Margin (IM) were scheduled to begin going into effect on September 1, 2020. I thought you might be interested in seeing the blog just posted by Cassini Systems CEO and Founder Liam Huxley on this decision, as pasted below and available via this link: https://cassinisystems.com/cassini-commentary-umr-one-year-delay/.
Cassini is the leading provider of pre- and post-trade margin analytics for derivatives market participants and has the industry's only real-time, on-demand (intra-day) SIMM calculation service<https://cassinisystems.com/products/simm-on-demand/> for IM. The firm is a licensed vendor for the International Swaps and Derivatives Association (ISDA) SIMM(tm) (Standard Initial Margin Model) methodology to help market participants calculate IM on non-cleared derivatives under the framework developed by BCBS and IOSCO.
Huxley and other experts at Cassini are available as a resource to media on the impact of this decision on market participants, as well as on all things related to SIMM, IM, Variation Margin and understanding/analyzing the full cost of a trade. Please feel free to reach out.
Cassini Commentary: UMR Implementation One-Year Delay
Article from Liam Huxley, CEO & Founder, Cassini Systems
As firms across the buy side begin to process the recent BCBS and IOSCO recommendation to delay by one year the implementation of phases 5 and 6<https://www.bis.org/press/p200403a.htm> of the uncleared margin rules (UMR), we wanted to share why Cassini Systems supports this move.