Hazeltree prepares for UMR compliance
23 September 2021 US
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Hazeltree Collateral Management has been upgraded to allow clients to comply with phases 5 and 6 of the Uncleared Margin Rules (UMR).
Phase 5 came into effect on 1 September and pertains to any firm with an average annual notional amount (AANA) of uncleared over-the-counter derivatives of more than US$50 billion.
These new regulations require applicable firms to post and receive initial margin under the directions of UMR.
This marks a complex process for many in-scope firms, while phase 6 (due September 2022) will widen the scope even further to companies with AANA of more than $8 billion.
As a provider of treasury management and portfolio finance solutions, Hazeltree recently released Hazeltree AANA Estimator to help clients calculate and monitor their AANA on a daily basis to prepare for UMR compliance.
Joe Spiro, director of product management, Hazeltree, comments: 鈥淗azeltree has developed a comprehensive collateral management workflow that allows clients to operate within the framework of UMR, using the same model as a tier 1 broker-dealer, while still focusing on the unique needs of the buy-side.鈥�
鈥淭he ability to calculate any of the three industry standard margin approaches (distinct, greater of, or allocated), calculate required value for tri-party accounts, and the expanded functionality for initial margin are just a few of the important features that have made this transition smooth for Hazeltree鈥檚 clients.鈥�
鈥淎s our phase 5 clients experienced, complying with UMR is a long process, and requires preparation. We are proud of the success our clients have had in making this transition smoothly, with Hazeltree鈥檚 help,鈥� adds president CEO, Sameer Shalaby.
Phase 5 came into effect on 1 September and pertains to any firm with an average annual notional amount (AANA) of uncleared over-the-counter derivatives of more than US$50 billion.
These new regulations require applicable firms to post and receive initial margin under the directions of UMR.
This marks a complex process for many in-scope firms, while phase 6 (due September 2022) will widen the scope even further to companies with AANA of more than $8 billion.
As a provider of treasury management and portfolio finance solutions, Hazeltree recently released Hazeltree AANA Estimator to help clients calculate and monitor their AANA on a daily basis to prepare for UMR compliance.
Joe Spiro, director of product management, Hazeltree, comments: 鈥淗azeltree has developed a comprehensive collateral management workflow that allows clients to operate within the framework of UMR, using the same model as a tier 1 broker-dealer, while still focusing on the unique needs of the buy-side.鈥�
鈥淭he ability to calculate any of the three industry standard margin approaches (distinct, greater of, or allocated), calculate required value for tri-party accounts, and the expanded functionality for initial margin are just a few of the important features that have made this transition smooth for Hazeltree鈥檚 clients.鈥�
鈥淎s our phase 5 clients experienced, complying with UMR is a long process, and requires preparation. We are proud of the success our clients have had in making this transition smoothly, with Hazeltree鈥檚 help,鈥� adds president CEO, Sameer Shalaby.
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