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

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