The fifth and penultimate phase of uncleared margin rules (UMR) went live in September 2021 for firms with aggregate average notional amount (AANA) of in-scope derivatives greater than 50 billion in dollars or euros. In addition to the notional thresholds, initial margin is required to be posted between counterparties where there is a consolidated threshold of $/€50 million.
According to Phil Hermon, executive director FX products at CME Group, this is likely to impact a large number of real-money accounts, such as asset managers and pension funds, who typically run large, directional books.
Asset managers and pension funds subject to UMR have to post initial margin for their uncleared derivatives.
Thanks for your interest in Euromoney!
To unlock this article:
