The Initial Margin (IM) rules for uncleared OTC derivatives have triggered unprecedented front-to-back change for in-scope firms, including heavy IT, operational and organisational change.
Based on ISDA’s estimates, for Phase 6 (Sept-2022) there will be approximately 800 new firms caught in scope.
The huge volume of new Phase 6 firms only increases the compliance complexity for in-scope firms, based on the industry queues that will further slow down their delivery at vendors, custodians and legal teams.
To achieve compliance by Sept-2022, it will be absolutely critical for firms to beat those industry queues, via accelerated scope analysis, solution decisions and delivery execution.
Based on the challenges raised, most Phase 6 firms will have three key objectives for their Initial Margin compliance programmes:
1. Accelerated compliance
2. Reduced compliance scope
3. Cost-efficient operating model
We share those same objectives.
Driven by our expertise, we’re in a unique position to help our clients achieve them.
Tonic’s specialists have defined and delivered the front-to-back IM changes to many firms across all phases, including for Tier 1 Dealers, smaller banks, buy-side firms and custodians.
We are considered the market leaders for Initial Margin transformation
What expertise do we have?
At Tonic we break down the IM changes into four key work streams: Calculations, Operations, Custodians and Legal.
Tonic is privileged to have specialists with deep product and transformation expertise across all four work streams, which we combine with high-value lessons learnt from previous phases and our powerful industry network.
The outcome is our unique ability to accelerate tailored compliance solutions for your firm, helping to minimise the impact of those industry queues, whilst in parallel managing both scope and cost impact.
At Tonic we provide a flexible, end-to-end set of Initial Margin consultancy services.
Our Initial Margin service menu contains a series of modules - shown in the visual below - covering high-value scope analysis, education and execution services.
Please get in touch for more details of our IM service menu, and how we can help your firm accelerate its compliance objectives.