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EMIR

Uncleared margin rules starting to bite

The variation margin requirements of the uncleared margin rules were to start globally on 1st March. However due to a backlog in the required “re-papering”, most jurisdictions signalled that the rules would be delayed using various legal mechanisms (see here). This delay is now ending in many jurisdictions and the rules will take effect for covered market participants (in the EU, many energy companies will remain exempt). This article from ISDA highlights the large amount of work that has been carried out and how much more ready the industry is. This report on The OTC Space by Nick Stafford provides more background.

However, those who are not ready, and who have entered into contracts after March 1st may have some issues, as reported here on The Trade web site.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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