After the financial crisis, the G20 called on finance ministers and central bank governors to reach agreement on an international framework of reform in several critical areas, including the over the counter (OTC) derivatives markets. One goal aimed to standardize OTC derivatives contracts by utilizing central clearing and for trades not cleared, to be subject to higher collateral requirements known today as the non-cleared margin rules.
To help facilitate the process and provide a standardized framework for the exchange of collateral, the International Swaps and Derivatives Association (ISDA) published the Credit Support Annex (CSA) for its ISDA Master Agreements. ISDA Master Agreements and CSAs are lengthy complex documents that require the attention of specialists, often attorneys, with experience working with ISDAs and CSAs.
Drafting, negotiating and executing the required ISDA documentation is a critical element in complying with the Margin Rules and could prove to be a major bottleneck in terms of meeting compliance deadlines. In addition to the sheer volume of documents that will be required and their inherent complexity, there are several other factors that exacerbate the problem.
What you'll take away:
To approach the new OTC margin requirements in an efficient and cost-effective manner, download this article to:
- Identify the bottlenecks specific to your organization
- Understand the 4 main options to tackle margin requirements
- Pinpoint the ideal answer that will help you manage your business and compliance obligations with confidence