In September 2021, a new threshold for Initial Margin (IM) under Uncleared Margin Requirements (UMR) came into effect under Phase 5.
This will pose a considerable operational and technological challenge for all in-scope market participants. For many, simply determining if they are in-scope is a challenge in itself.
Across Asia Pacific (APAC), the Americas, Europe, South Africa and the UK, the impact of UMR will resonate globally with the added challenge of local thresholds.
In this report, we will examine the background of Uncleared Margin Rules, what the Phase 5 and 6 implementation dates will mean for financial institutions, who is in scope, what to expect from the phased implementation, the impact felt by FIs across the globe, and how to tackle the most common UMR challenges with effective technology and automation.