Minimising the UMR Compliance Burden by Embracing Automation

Neil Murphy talks to Regulation Asia about how prepared phase 5 and 6 firms are for compliance and how TriOptima is easing the burden through automation.

In April 2020, the BCBS (Basel Committee on Banking Supervision) and IOSCO announced a one-year extension for phase 5 and phase 6 firms to meet initial margin requirements – commonly referred to as UMR (Uncleared Margin Rules). The move was broadly welcomed by firms amid the operational challenges and disruptions they faced during the early stages of the Covid-19 pandemic.

Still, about 300 phase 5 firms will come into scope on 1 September 2021 and about 600-700 phase 6 firms a year later. Many of these firms may not have the tools in place that would make compliance easier, compared with larger financial institutions that came into scope during earlier phases of UMR.

Elliott Gotkine recently sat down with Neil Murphy, Business Manager at TriOptima, to discuss how prepared phase 5 and 6 firms are for compliance, what key challenges remain, and how TriOptima is working with these firms to ease the compliance burden through automation.

TriOptima won Best Solution in Initial Margin Compliance in the 3rd Regulation Asia Awards for Excellence 2020 in an online ceremony on 15 December 2020. 

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