Margin requirement challenges identified for international derivatives industry in 2015
The derivatives industry faces challenges in the proposed introduction of margin requirements for non-cleared OTC derivatives transactions.
Women in Derivatives (WIND), a nonprofit organisation that provides channels for educating women through forums, brought together thought-leaders and experts in the derivatives industry who focused upon the impending margin requirements. At the first WIND educational event in London, the panel discussion focused on the challenges market participants may face as a result of implementing the BCBS-IOSCO proposal in relation to margin.
During "Changing Tides: The Evolution of Liquidity Pools in Today's Global Markets", panelists highlighted a range of issues including the anticipation of the final rules of the BCBS-IOSCO proposals and the need for regulatory coordination on both sides of the Atlantic, as well as globally.
The WIND event was hosted by international legal practice Allen & Overy in London. The panelists included leading professionals from the derivatives community:
• Jenniffer Emanuel, Managing Director and Global Head of Counterparty Risk Management, Goldman Sachs;
• Tina Hasenpusch, Chief Operating Officer, CME Clearing Europe;
• Christiana Norman, Managing Director and Associate General Counsel, Bank of America Merrill Lynch; and
• Melissa Tuttle, Executive Vice President and Global Head of Equity Trading, PIMCO.
In moderating the panel discussion, Emma Dwyer, Allen & Overy partner, says: "In contrast to the imminent mandatory clearing obligation in the EU, which we sense the market is more prepared for, the margin requirements proposal still presents a multitude of questions for market participants. It will be interesting to see how the industry will carry out the work that still needs to be done in the proposed timeframe."
Jenniffer Emanuel says: "Implementation of the margin rules for uncleared swaps will be the single biggest and most complex logistical challenge the industry has faced as a result of regulatory change since the crisis."
"Creating a forum for senior female leaders to share their insights about trends and opportunities emerging in the financial industry is one of WIND's top priorities," says Kristin Boggiano, President of WIND and Special Counsel at Schulte Roth & Zabel. "Our industry is undergoing historic regulatory and structural changes, and WIND provides a means for mentoring relationships to develop that help women navigate their careers as the market evolves."