CloudMargin has released a comprehensive interactive “FlightPlan” microsite designed to help financial institutions globally navigate the uncleared margin rules and other regulations impacting their collateral management function. The site enables visitors to identify and tailor information most pertinent to their business and plan for the continued roll-out through 2020 of regulations and mandates, including those coming into effect in September.
Designed by the UK-based digital firm Eight Arms, the FlightPlan microsite offers a range of interactive digital tools, including a map identifying regulations in major jurisdictions around the globe, a readiness checklist and a solutions comparison activity, all tailored to the inputs the user provides within each tool. The site also features a resource hub populated with additional industry tools, blog posts and articles.
As a result of the financial crisis, global leaders at the 2009 G-20 Summit in Pittsburgh agreed on a range of measures to make the over-the-counter (OTC) derivatives market safer and more secure through the wider use of central clearing and the posting of Initial Margin (IM) and Variation Margin (VM) for trades not centrally cleared. Rules covering central clearing of OTC derivatives were implemented beginning from 2012, and uncleared margin rules have been taking effect on a rolling basis from 2016 to 2020. Among the upcoming new collateral requirements facing the financial industry are the Sept. 1 end of the forbearance period on VM in multiple jurisdictions; the Dec. 15 deadline related to FINRA 4210; the Jan. 3, 2018 deadline for physically settled foreign exchange (FX) forwards; and the roll-out over the next few years of complex rules on IM.
Said Kari Litzmann, CloudMargin Chief Marketing Officer: “Just as CloudMargin simplified the collateral and margin management process for firms through a cost-effective, cloud-based workflow tool, FlightPlan seeks to cut through the clutter and simplify the process of accessing quality information so that firms can get back to doing what they do best.
“We want this to be a go-to resource for firms affected by these new regulations, whether they operate in one country or in regions throughout the world. This will be a dynamic site, with new information and resources added as events unfold. We aim to make this site a place where we can show the value of being a part of the CloudMargin community – where we can bring people and organisations together and offer holistic solutions for the marketplace. Each contributor to the site thus far provides a unique and important perspective, and we look forward to contributions from other relevant parties to further enhance the site in the future.”
The site is populated with insights from a wide range of diverse market participants and service providers such as Derivatives Risk Solutions LLP (DRS) and SmartDX™ from Smart Communications. The regulatory mapping has been provided by DRS, a leading regulatory consultancy combining derivatives documentation expertise with full-spectrum outsourcing services. SmartDX is the industry standard for automating trade and relationship document generation, collaboration and processing in the capital markets.