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EMIR & DF Technology Changes Abound

With the next wave of EMIR regulations landing in mid-August of this year there are many fund managers & non-financial corporates on both sides of the Atlantic who are revamping their business processes and systems to be better prepared for the next overhaul.

There have already been high impact changes in many key areas that  firms are still trying to work through and understand, which include  reporting, valuation marking and clearing challenges as well as identifying the full list of OTC derivatives within the scope of the regulation.

Additionally, many firms are now setting their sites on Collateral. And this is certainly a logical step given the latitude within EMIR with respect to collateral. Some key challenges seen in the market place for teams heavily involved with OTC derivatives is on collateral sourcing as well as syncing up the different internal teams and adapting processes & technology. Another major challenge is how to best bring corporates up to speed on the regulatory change. All of these point to the fact that this is one  area within EMIR where there is considerably more flexibility, but certainly not any less complexity when trying to understand implementation & rebuilding business processes.

What is certainly clear is that with the magnitude of the changes that are on the horizon, the firms who understand the regulatory implications and adapt their systems and architecture will be best positioned once all the dust settles.

As the summer continues, in this space we expect to continue to see many teams who are adapting their trading and execution strategies to best shift with changes in these regulations. We are interested to hear how your firm is adapting, so please let us know what has or has not worked for you.

Please attend our recent EMIR & Dodd-Frank webinar available on demand discusses these topics and many other EMIR & Dodd-Frank issues.

About the author

Matthew Streeter CFA's picture

Matthew Streeter CFA

Capital Markets Strategist, FINCAD

Matthew Streeter, Capital Markets Strategist at FINCAD, has expertise in derivatives trading, structuring & pricing models as well as a background in operations, pension fund analysis, hedging strategies and PnL / performance reporting. He has held positions at JP Morgan, Société Generale, Wachovia Capital Markets, Bank of America and Deutsche Bank.


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