Calculating your Average Aggregate Notional Amount (or AANA) is an ongoing regulatory requirement that must be performed on annual basis by firms not yet subject to UMR rules, to prove that they remain out-of-scope or if they must now comply.
TONIC HAVE PARTNERED WITH CLOUDMARGIN TO OFFER AN AANA SERVICE YOU CAN TRUST
Initial Margin obligations under the UMR rules were phased in over multiple years, with the number of firms in-scope increasing as the AANA threshold decreased each year.
September 2022 saw the ‘final' phase 6 capture firms with an AANA in excess of $8bn USD / EUR, or applicable local currency per jurisdiction (see table below).
These final thresholds set the floor at which firms must measure their own AANA against on an annual basis.
For firms that believe they maybe in-scope, having an accurate and early view of your AANA is critical to enable sufficient time to plan and deliver the requirements that UMR rules will impose, but calculating AANA can be complex.
Data consolidation and normalisation, jurisdictional application and treatment of funds all need careful consideration and regulators will expect a robust process underpinning it. For more details on the AANA challenges faced by firms please see our AANA Calculation Guide.
That’s why firms need an accurate view of AANA they can be confident in. Firms below the threshold can demonstrate their exclusion with confidence, whilst those above can take pro-active action - either for compliance readiness or deploying tactics to bring AANA down before the formal regulatory calculation period. With Tonic +CloudMargin, you have AANA partners with the expertise to help navigate it all.
Tonic and CloudMargin have teamed up to offer an AANA service you can trust.
Tonic’s regulatory experts will analyse your trading book and legal status to ensure the correct methodology for your firm’s AANA calculation is applied.
CloudMargin’s award-winning cloud technology will consolidate your data, normalise and calculate your AANA and provide dynamic real-time reporting of your AANA over time, by product and legal entity.
There are six service components to our joint AANA service:
1. Regulatory Profiling
2. Upfront AANA Calculation
3. Ongoing AANA Calculations
4. AANA Alerts & Dynamic Reporting
5. Expertise-led Advice
6. Breach Safety Net
