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Phase Two Firms go live with Initial Margin on September 1st and the market yawns.

Sep 12, 2017

IM phase 2 firms went live today with the initial margin requirements of the non-cleared margin rules and by all accounts the go-live was a success.  While the number of counterparty groups that went live was much smaller this year than last (6 vs 24) the effort undertaken by each firm to comply with the rules was no less daunting.  However, unlike last year, Phase 2 firms used the extra time to great advantage by getting their custodian arrangements set up on time and also by conducting much more testing of their calculations and of the operational end to end process.  Analysis of day 1 average IM portfolio differences from Phase 1 vs Phase 2 firms reveals a 50+% improvement by Phase 2 firms.

Mark Demo
Industry