New Margin Rules for uncleared derivatives (UMR) transactions

The global regulatory agenda covering the over-the-counter derivatives market participants recommends, among other things, the implementation of margin requirements for non-centrally cleared derivatives.

As per EMIR, the implementation of variation margin (VM) requirements occurred in March 2017, while initial margin (IM) requirements continue to phase-in annually through 2020.

Newly In-Scope Counterparties (NISC) will have to address a set of challenges to achieve compliance with the new UMR.