How to Prepare for the Next Phases of Initial Margin Requirements

Are you prepared for initial margin? If your institution is captured during one of the final phases of uncleared margin rules, the entire lifecycle of your trades from inception through to post trade settlement will be impacted.

There are multiple issues, challenges and some changes of which you need to be aware. One thing is for sure: it will be far more cumbersome and expensive for market participants to trade and hold non-cleared derivatives.

Initial margin requirements have already been implemented into groups of market participants over three phases, with phase 4 coming into play this month. However the next two years may see a more than 10-fold increase in the number of firms subject to the regulation.

What have we learned so far? What can we expect for the final implementation phases? How can market participants prepare?

On Wednesday, September 25 at 10 AM EDT Numerix and KPMG hosted a webinar presentation exploring what’s changed under the newest revisions, what’s expected ahead of final phases and took a deep dive into key lessons learned from the prior phases.

Key Topics discussed included:

  • What's changing for phase 5 and phase 6
  • Lessons learned from previous phases
  • Challenges and how to prepare for them


Featured Speakers:

Naresh Malhotra, Director, Financial Risk Advisory, KPMG
Naresh Malhotra is U.S. Lead Director for Trading Book Capital and associated initiatives within Financial Risk Management (FRM) at KPMG. His interests span across market risk, counterparty credit risk, model risk, and machine learning applications in the financial industry. Previously, Malhotra worked at Diamond Notch Asset Management, a hedge fund based New York, as a portfolio manager and head of European Credit Trading. In prior roles, he served as head of credit exotics at Commerzbank, co-head of credit correlation trading at Merrill Lynch, and as a senior credit derivatives trader at UBS and Barclays. After his Ph.D., Malhotra spent a few years as research faculty in engineering and applied sciences at Caltech (Pasadena).

Augusto Carvalho, Regional Director of Presales, Numerix
Augusto Carvalho has been working with derivatives pricing for almost 16 years. Since 2014, he has been working with Numerix as a Solution Specialist focusing on Market and Credit Counterparty Risk for Latam and, more recently, in Southeast USA. Prior to Numerix, his experience includes modeling credit derivatives for an investment bank in Milan, credit risk management for a pioneer mobile payment startup, and pricing and R&D at the derivatives exchange in Brazil. He holds a masters’ in theoretical physics and complex systems and applications to risk management and has extensive lecturing experience on derivatives pricing in universities and financial education centers in Brazil.

JamesJockleModerator: James Jockle, Chief Marketing Officer, Numerix
Mr. Jockle leads the company's global marketing efforts, spanning a diverse set of solutions and audiences. He oversees integrated marketing communications to customers in the largest global financial markets and to the Numerix partner network through the company's branding, electronic marketing, research, events, public relations, advertising and relationship marketing. Prior to joining Numerix, he served as Managing Director of Global Marketing and Communications for Fitch Ratings. During his tenure at Fitch, Mr. Jockle built the firm’s public relations program, oversaw investor relations and led marketing and communications plans for several acquisitions. He also oversaw the brand development of a new company dedicated to the enhancement of credit derivative and structured-credit ratings, products and services. Prior to Fitch, Mr. Jockle was a member of the communications team at Moody's Investors Service.


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