The IM challenge
1 September 2021 marked the entry of an estimated 330 firms into the Initial Margin (IM) regime. Each IM phase has proved to be a significant challenge – compliance requires credit support annexes, custodial account agreements and eligible collateral schedules to be aligned. DRS clients aside, the vast increase in volume occasioned by Phase 5 proved to be too large for the market to swallow, with many entities forced to rely on emergency monitoring arrangements and threshold relief to continue trading.
1 September 2021 also marked the beginning of IM Phase 6, a near threefold increase on Phase 5 – an estimated 800 firms requiring documentation for +10,000 relationships. IM expertise is confined to a relatively small number in-house teams, law firms and consultancies, a resource set which is still clearing the Phase 5 backlog. Phase 6 promises to be a paperwork pile-up of monumental proportions. Successfully scaling the Phase 6 IM mountain requires the right guide.
DRS has been heavily involved in all five phases of IM to date. Drawing on this expertise, we have created an in-depth guide to the most vital clauses of the “Next Generation” IM CSA.
How we can help
As an alternative legal services provider with over 10 years’ experience working in the financial services sector, we will partner with you to meet all of these challenges. We have been heavily
involved in all five phases of IM to date, so our team can deliver the expertise you need to make IM negotiations smooth and straightforward.
Our senior leadership team built their careers working in management positions within financial sector legal departments – we know your business.
In addition, we recruit outstanding talent whose training and focus mean that whether the challenge is complexity, volume or time we deliver solutions that are fast, high quality and cost effective.
DRS has been heavily involved in all five phases of IM to date. Drawing on this expertise, we have created an in-depth guide to the most vital clauses of the “Next Generation” IM CSA.
The latest IM news
Our blog covers IM Negotiations extensively – check out some of our latest posts.
Your IM negotiation guide – everything you need to know…
DRS has been heavily involved in all five phases of IM to date. Drawing on this expertise, we have created an in-depth guide to the most vital clauses of the “Next Generation” IM CSA.