Non-centrally cleared OTC derivatives margin survey

New regulations governing the margining of non-centrally cleared OTC derivatives are rapidly being developed.

Over the period April to June 2014, InteDelta undertook a global survey of derivatives market participants in order to assess expected market impact and how the road to compliance is being navigated.

The survey findings, accompanied by a commentary from InteDelta, have now been published. The main contents of the paper are as follows:

·         Impact of the regulations

o    Expected materiality of future bilateral OTC derivatives business

o    Which firms will be impacted?

o    Overall impact to systems, processes, policies and documentation

o    Organisational impact

·         Implementation progress made

·         Focus Topics

o    Initial Margin models

o    Haircut models

o    Re-hypothecation

Interest in the survey was high across all types of institution. More than 80 institutions responded to the survey.  59% of survey respondents were banks, 41% were asset managers.