Investment Operations

Uncleared Margin Rules

Categories Derivatives, Operations, Risk

Course Instructor

Course Level

Intermediate

Certification

8.0 CPE Credits

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: November 14-15

The Uncleared Margin Rule course provides finance professionals with an in-depth understanding of the regulatory framework surrounding uncleared margin requirements. Stay up-to-date with the latest changes and best practices, ensuring your organization remains compliant and competitive in the global market. This comprehensive course will help you navigate the challenges posed by these regulations, enabling you to make informed decisions in the best interest of your organization.

Who Should Attend

  • Compliance officers
  • Legal professionals
  • Risk managers
  • Operations professionals
  • Regulatory and policy professionals
  • Portfolio managers
  • Asset managers

Course Objectives

  • Gain a deep understanding of the Uncleared Margin Rule and its implications
  • Learn about the latest updates and best practices in margin requirements
  • Develop strategies to remain compliant with regulations
  • Understand the impact of the Uncleared Margin Rule on your organization’s operations
  • Enhance decision-making skills in navigating regulatory challenges

Pre-requisite: Collateral Management Fundamentals or equivalent experience.

Agenda

Day 1

  1. Review of the Rules US and Other Regulatory Jurisdictions – Understanding the Requirements
  • The Implementation Phases
  • Covered Products
  • Eligible Collateral
  • AANA Calculation Periods
  • UMR Thresholds for Covered Entities
  • Pending Rule Changes
  1. Initial Margin (IM) and Variation Margin (VM)
  • Definition of IM and VM Under the UMRs
  • Difference between Independent Amount and IM
  • Unaffiliated Third Party IM Segregation Requirement
  • Triparty or Third Party Segregated Accounts Models
  • Custody Segregation Account Set-Up and Documentation
  • On-boarding to Counterparty Custodian Accounts
  • Operational Workflow Best Practice Review
  1. Regulatory Documentation Requirements
  • Understanding the Documentation Requirements
  • Negotiating the IM Credit Support Annex/Credit Support Deed
  • Allocating the IM Threshold Across Business Entities
  • Collateral Schedule Requirements and Considerations
  • Importance of Accurate and Complete Documentation
  • Legacy Trade Considerations
  • Using AgreementManager at Acadia
  1. Calculation of Margin
  • IM Margin Model Development – ISDA SIMM or Grid
  • Calculation of Risk Sensitivities
  • CRIF file for ISDA SIMM Calculations
  • Grid Calculation Methods
  • Split Model Considerations
  • Test Models for Regulatory Compliance

Day 2

  1. Review Prior Day, Q & A
  2. Collateral Management Operations
  • OTC Derivatives Netting Sets
  • Margin Call Workflows
  • Communications with Third Party and/or Triparty Custodian (RQV)
  • Managing Collateral for Legacy Trades and Covered UMR Trades
  • Collateral Management Operating Models for Managing Uncleared, Cleared OTC, Securities Finance and CCP Collateral
  • The Importance of Actionable Agreement Data
  • Continuous Reconciliation Processes
  • IM Model Testing & Maintenance
  • Dispute Prevention & Resolution
  1. Optimizing Collateral Operations and Optimizing Collateral
  • Administering the Collateral Inventory from Single or Multiple Pools
  • Designing the Optimization Models
  • Facing Off Against Market Volatility
  • Technology and Vendor Solutions
  • End-to-End Collateral Management & Optimization Service Providers
  • The Impact of the T+1 Settlement Transition on Collateral Management & Optimization – Get Prepared
  1. Avoiding or Mitigating the Impact of the UMRs
  • Reduce the AANA with Portfolio Compression
  • Use Alternatives to Uncleared Products
  • Keep IM Below Threshold
  • Simplify Counterparty Network
  • Re-engineer Siloed Product Specific Operations and Replace Legacy Technologies
  1. Cross Border, Cross Regulatory Jurisdictional Issue Management
  2. The Future of the UMRs and Coming Regulatory Changes
  3. Review & Q&A

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Intermediate

Certification

8.0 CPE Credits

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: November 14-15

The Uncleared Margin Rule course provides finance professionals with an in-depth understanding of the regulatory framework surrounding uncleared margin requirements. Stay up-to-date with the latest changes and best practices, ensuring your organization remains compliant and competitive in the global market. This comprehensive course will help you navigate the challenges posed by these regulations, enabling you to make informed decisions in the best interest of your organization.

Who Should Attend

  • Compliance officers
  • Legal professionals
  • Risk managers
  • Operations professionals
  • Regulatory and policy professionals
  • Portfolio managers
  • Asset managers

Course Objectives

  • Gain a deep understanding of the Uncleared Margin Rule and its implications
  • Learn about the latest updates and best practices in margin requirements
  • Develop strategies to remain compliant with regulations
  • Understand the impact of the Uncleared Margin Rule on your organization’s operations
  • Enhance decision-making skills in navigating regulatory challenges

Pre-requisite: Collateral Management Fundamentals or equivalent experience.

Agenda

Day 1

  1. Review of the Rules US and Other Regulatory Jurisdictions – Understanding the Requirements
  • The Implementation Phases
  • Covered Products
  • Eligible Collateral
  • AANA Calculation Periods
  • UMR Thresholds for Covered Entities
  • Pending Rule Changes
  1. Initial Margin (IM) and Variation Margin (VM)
  • Definition of IM and VM Under the UMRs
  • Difference between Independent Amount and IM
  • Unaffiliated Third Party IM Segregation Requirement
  • Triparty or Third Party Segregated Accounts Models
  • Custody Segregation Account Set-Up and Documentation
  • On-boarding to Counterparty Custodian Accounts
  • Operational Workflow Best Practice Review
  1. Regulatory Documentation Requirements
  • Understanding the Documentation Requirements
  • Negotiating the IM Credit Support Annex/Credit Support Deed
  • Allocating the IM Threshold Across Business Entities
  • Collateral Schedule Requirements and Considerations
  • Importance of Accurate and Complete Documentation
  • Legacy Trade Considerations
  • Using AgreementManager at Acadia
  1. Calculation of Margin
  • IM Margin Model Development – ISDA SIMM or Grid
  • Calculation of Risk Sensitivities
  • CRIF file for ISDA SIMM Calculations
  • Grid Calculation Methods
  • Split Model Considerations
  • Test Models for Regulatory Compliance

Day 2

  1. Review Prior Day, Q & A
  2. Collateral Management Operations
  • OTC Derivatives Netting Sets
  • Margin Call Workflows
  • Communications with Third Party and/or Triparty Custodian (RQV)
  • Managing Collateral for Legacy Trades and Covered UMR Trades
  • Collateral Management Operating Models for Managing Uncleared, Cleared OTC, Securities Finance and CCP Collateral
  • The Importance of Actionable Agreement Data
  • Continuous Reconciliation Processes
  • IM Model Testing & Maintenance
  • Dispute Prevention & Resolution
  1. Optimizing Collateral Operations and Optimizing Collateral
  • Administering the Collateral Inventory from Single or Multiple Pools
  • Designing the Optimization Models
  • Facing Off Against Market Volatility
  • Technology and Vendor Solutions
  • End-to-End Collateral Management & Optimization Service Providers
  • The Impact of the T+1 Settlement Transition on Collateral Management & Optimization – Get Prepared
  1. Avoiding or Mitigating the Impact of the UMRs
  • Reduce the AANA with Portfolio Compression
  • Use Alternatives to Uncleared Products
  • Keep IM Below Threshold
  • Simplify Counterparty Network
  • Re-engineer Siloed Product Specific Operations and Replace Legacy Technologies
  1. Cross Border, Cross Regulatory Jurisdictional Issue Management
  2. The Future of the UMRs and Coming Regulatory Changes
  3. Review & Q&A

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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