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Non – cleared Margin Implications for EU Regulated Firms

Feb 3, 2017

Tomorrow is first day that EU only regulated firms must exchange initial margin.  The link to the FCA website below provides an excellent video that summarizes the scope of the rules and the implications for EU regulated firms.

https://www.fca.org.uk/markets/emir/margin-requirements-uncleared-derivatives

Given our experience with US and Japanese firms that went live with their versions of the rules back in September 2016 we expect a much smoother transition to a post-compliance date operating environment.  The number of firms going live are a lot less than in September and firms already have their IM agreements and tri-party custody agreements in place which should make for an uneventful go-live.

Mark Demo
Industry