Mandatory Collateraisation of Uncleared OTC Derivatives (Variation Margin)

It goes without saying that one of ISC's core strengths is project management, enabling the effective delivery of regulatory change within your organisation at a programme or project level as necessary.

The Brief

The client requested that ISC provide a skilled and pragmatic Project Manager to lead a project to establish the mandatory collateralisation of uncleared OTC derivatives.

Project Scope

The project needed to establish a function that did not already exist at the client and was therefore 'new ground'. This included not just the people, processes and data essential to establish the capability, but also the onboarding of external provider technology to calculate, reconcile, and pay/receive collateral. This had to be done by the imperative date in Q1 2017.

Our Role & Value

ISC’s role was to supply a Project Manager to identify the required resource, recruit, and then manage the project to completion. This included reporting to various levels of management, working closely with key operational areas, as well as Compliance Advisory, and chairing the Steering Committee.

The Outcome

The client achieved regulatory compliance for its uncleared OTC derivatives, although for FFX, the regulatory imperative 'went away'. Despite this, the collateralisation of all such positions (as is good market practice) was implemented successfully and cost effectively.

Consultant Reflections

“Over the last 15 years my colleagues at ISC and I have seen the Investment Management industry through the best and the worst of times. We take great pride in the fact that we have helped our clients to manage the changes brought about by such tectonic shifts.”

Julian Manfredi
Investment Solutions Consultants

ISC Regulatory Change Forum June 2022

Thank you to @Jonathan Boswell and @Simon Haque for hosting a very informative Regulatory Change forum last month and thank you to those who attended we hope you found this useful and interesting

READ MORE

Should the maintenance of legacy technology come before the implementation of new technology?

Obviously the legacy technology came first but should the maintenance of legacy technology come before the implementation of new technology

READ MORE

Is Change managed effectively by the industry?

A 1.6% failure rate seems very low. I have no evidence but… maybe if the Regulator asks what your failure rate is you underplay it

READ MORE

Definition of Change Management

The FCA’s Implementing Technology Change uses a definition of Change Management which sounds a lot like ‘standard’ Project Management

READ MORE

Change Forum – June 2022

On Wednesday we hosted our Change Forum with our Change Collective partners

READ MORE

Delivering Change

Delivering Change with reliance on a third party is fraught with risk, both parties speak in different corporate languages, they may talk of partnership

READ MORE

ESMA requirement to create a process for selecting consolidated tape providers

MiFID II/MiFIR proposed the idea of putting Consolidated Tape (CT) providers into place, platforms which would provide consolidated data on prices and

READ MORE

Wow! This is a pretty strong endorsement of agile ways of working by the Regulator

This finding is significant and provides the solution for many of the issues that the FCA has uncovered in its report

READ MORE

ISC partnership with FundSense

We are pleased to announce that FundSense and Investment Solutions Consultants have created a strategic partnership

READ MORE

ESG Forum June 2022

ISC hosted their second ESG Forum with our guest speakers Jamie Keen and Frank Potaczek from FundSense who provided useful insights on the

READ MORE
We listen to your needs

We listen to your needs

We understand your problem

We understand your challenges

We suggest a solution

We provide solutions

We help with implementation

We help with implementation

Contact us to find out more

ISC is all about helping our clients be successful. Clients receive a personal relationship with our talented and pragmatic consultants, whose goal is to help them achieve success.