Initial Margin - White Paper

InteDelta has collaborated with BNP Paribas Securities Services, Lombard Risk and TMX Technologies to produce a White Paper titled “Initial Margin: a commentary on issues for centrally cleared and non-centrally cleared business”. The White Paper explores the regulatory drivers for the implementation of initial margin and the challenges that institutions face from a systems, organisational and modelling perspective.

Excerpt from the whitepaper: “The financial crisis revealed major weaknesses in the global financial system, particularly in the interdependence between large financial institutions. A number of regulatory initiatives are in the process of being put in place to reduce the overall counterparty risk in the system. Most significant is the move to central clearing. A key risk-mitigating feature of central clearing is the requirement to post Initial Margin (IM) to Central Clearing Counterparties (CCPs). BCBS IOSCO has published a policy framework recommending the bilateral posting of IM also for transactions not subject to central clearing.”