London Stock Exchange are participating in the COOConnect webinar on 28 October to help firms understand understand what they need to do in order to get ready for EMIR.
Essentially, end-investors and fund managers with swap portfolios need to get ready for EMIR. That means:
- Decide if you are exempt from compliance with EMIR under the threshold and hedging limits, and if so, whether you want to be
- Work out which swaps (IRS and CDS, basically) will be cleared and which will continue to trade bi-laterally
- Choose a clearing broker (bearing in mind any existing futures and options and bi-lateral swap business with a broker, credit risk, margin management requirements and point 4 below)
- Choose a secondary, back-up clearing broker
- Decide the division of business between primary and secondary clearing broker
- Assess whether you have the right collateral (e.g. cash) available in the portfolios
- If the right collateral is not available, investigate where and how to get it (e.g. the repo market)
- Consider appointing a third party collateral manager (e.g. BNY Mellon, but need to look at any existing custodian relationship)
- Select the CCPs that clear the right swaps and whose procedures (including asset segregation) you like
- Choose and post initial margin to CCPs for the first time
- Decide on any asset segregation arrangements at the CCPs
- Renegotiate CSAs to put effective collateral management arrangements in place
- Choose trade repositories; Work out how to report to trade repositories (i.e. assess the number of legal entities involved, including individual funds/beneficial owners in the case of a fund manager acting for third party clients, and work out the division of labour with clearing broker, and any third party applications or services)
Register for the webinar here - http://cooconnect.com/events/webinar-are-you-ready-emir
