The study from State Street of 300 buy-side firms showed less than a fifth were fully ready to comply from September 2021 or September 2022.
Tag: uncleared margin rules
JP Morgan gives buy-side clients an eagle-eye view of their assets to meet rising collateral demands
JP Morgan's Collateral Transport tool will act as the 'brain' for buy-side firms to manage assets used for securities lending or to meet margin calls.
Initial margin collected by phase one firms for their non-cleared derivatives totalled $173.2 billion, an increase of 10% compared to year-end 2018.
Asset managers receive respite from authorities in implementing the final phase of the uncleared margin rules as coronavirus continues to impact regulation.
The group of 20 industry bodies have said the outbreak has resulted in a significant delay for both custodians and buy-side firms in carrying out heavy onboarding tasks
The majority of respondents said the global pandemic was impacting their ability to prepare for upcoming regulations.
A new study found the two-way initial margin rules for non-cleared derivatives will also result in a collateral shortfall of $60 billion alone.
Despite the extension to comply with the final phase of the uncleared margin rules, major operational challenges remain for buy-side firms.
Northern Trust will use technology provided by AcadiaSoft for an outsourced collateral optimisation solution.
RBC I&TS has launched the service initially with one of Canada’s largest pension funds, and is s part of its evolving middle-office solution.