Learning outcomes

Course Introduction

This highly comprehensive and unique two-day training course has been specifically designed to train attendees in all relevant aspects of the global UMR and IM requirements as applicable within the EU. The training course will guide attendees through all the relevant requirements for IM requirements under the European Market Infrastructure Regulation (EMIR) and Commission Delegated Regulation (EU) 2016/2251 (Delegated Regulation). It will also cover operational requirements relating to how to calculate IM, either through implementation of the Table-Based Methodology or the Standard Initial Margin Method (SIMM), and an evaluation and review of the practical advantages and disadvantages of both.

Attendees will be guided through key aspects of negotiating and documenting IM CSAs, CSDs, and CTAs, as well as negotiating and executing a range of Third-Party Custodian agreements. Attendees will also be instructed on the ISDA SIMM™ operational framework as well as key SIMM Tool requirements. The training course will provide in depth coverage of a range of legal and operational challenges pertaining to the new IM requirements, including a highly comprehensive review of new IM technologies and offerings that are currently available on
the market.

“Like NISCs, dealers will also need to adapt existing or negotiate and execute new credit support annexes, custodial arrangements, eligible collateral schedules and account control agreements with counterparties and custodians. Given the anticipated number of NISCs associated with the final phases of UMR, the amount of time, resources and bandwidth necessary for these documentation efforts will be immense.” ISDA (2018)

 

About the Global Uncleared Margin Rules

The global Uncleared Margin Rules (UMR) for non-centrally cleared over the-counter (OTC) derivatives represent one of the biggest challenges to banks and financial services firms around the world. In place since 2016, the first phases have affected only the world’s largest firms dealing in OTC derivatives. However, it is the next phases, Phase 5 scheduled to go live in September 2020 and Phase 6 scheduled to go live in September 2021 that will usher in the most challenging frameworks for Newly In Scope Counterparties (NISCs) across the European Union (EU).

As the frameworks are based on Aggregate Average Notional Amount (AANA) of non-centrally cleared OTC derivatives, firms are required to prepare AANA estimates well in advance of these deadlines and must put in place a plethora of compliance frameworks. These include negotiating and documenting a host of Initial Margin (IM) Credit Support Annexes (CSAs) and Credit Support Deeds (CSDs), as well as negotiating ThirdParty Custodian agreements and English Law, New York
Law, or MultiJurisdictional Collateral Transfer Agreements (CTAs).

“Larger institutions brought into scope for IM in earlier phases were able to absorb the implementation timeline, build and costs of compliance in a manner that NISCs for the final phase may not. The fundamental challenges for market participants during the final phases of IM implementation are distinct from and more intense than those experienced in previous phases, and thus likely to result in broader systemic impact.”

ISDA (2018) Initial Margin for Non-Centrally Cleared Derivatives: Issues for 2019 and 2020. International Swaps and Derivatives Association, (July)

 

Training Schedule

Day one

  • 08:30 Registration with Welcome Coffee

  • 09:00 THE GLOBAL UNCLEARED MARGIN RULES FRAMEWORK AND EUROPEAN MARKET INFRASTRUCTURE
    MARGIN RULES FRAMEWORK

  • 11:00 Tea, Coffee, Refreshments&Networking

  • 11:15 GRID METHODOLOGY, STANDARD INITIAL MARGIN METHOD, AND SIMM TOOLS

  • 13:00 Luncheon

  • 14:00 THE ISDA SIMM OPERATIONAL FRAMEWORK

  • 15:30 Tea, Coffee, Refreshments & Networking

  • 15:45 THIRD-PARTY CUSTODIANS AND CUSTODIAN SERVICES AND AGREEMENTS

  • 17:00 End of Day 1

Day two

  • 08:45  Welcome Coffee

  • 09:00 IM LEGAL AND OPERATIONAL CHALLENGES

  • 11:00 Tea, Coffee, Networking

  • 11:15 NEGOTIATING AND DOCUMENTING IM CREDIT SUPPORT ANNEXES, CREDIT SUPPORT DEEDS, AND COLLATERAL TRANSFER AGREEMENTS – PART I

  • 13:00 Luncheon

  • 14:00 NEGOTIATING AND DOCUMENTING IM CREDIT SUPPORT ANNEXES, CREDIT SUPPORT DEEDS, AND COLLATERAL TRANSFER AGREEMENTS – PART II

  • 15:30 Tea, Coffee, Networking

  • 15:45 INITIAL MARGIN TECHNOLOGIES

  • 17:00 End of Day 2

Training Program

Request detailed Agenda - Initial Margin Regulation MasterClass

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Get to know the Expert Trainer

Rodrigo ZepedaCo-Founder and Managing Director
Storm-7 Consulting

Rodrigo Zepeda is an expert consultant who specializes in derivatives and banking and financial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM master’s degree in international and Comparative Business Law and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama), ‘MiFID II: Regulatory, Risk, and Compliance (London), and ‘Market Abuse: Operational Compliance’ (London), ‘AEOI (FATCA & CRS)’ (Manama, Bahrain). He has also delivered numerous In-House Training Courses around the world to major international financial institutions such as The Abu Dhabi Investment Authority (MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London), CAF, the Development Bank of Latin America
(Swaps and Over-the-counter Derivatives, Lima, Peru), Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London) and Bethmann Bank AG (MAD 2 MAR, Frankfurt). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU, or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.

Who should attend?

• People working within banks and institutional investment companies, e.g. pension funds, mutual funds, hedge funds, insurance companies, asset managers, in the role of: » traders, portfolio managers, salespeople, middle-office personnel, operations (back-office) personnel including those from derivative trade processing/ derivative collateral management/reconciliation/static data, compliance, risk management, legal
• Personnel working within central securities depositories or custodian organisations
• Personnel working for central counterparties and trade repositories
• Advisors or consultants working for management consulting firms.
• Business analysts and programmers

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FAQ

You can always register without a name using the TBA [To Be Announced] option. Please indicate TBA instead of the delegate name and 2 weeks prior to the event you are able to send the delegate name/s to booking[at]glceurope.com
While we are not happy to see you cancel your registration, we understand that “life happens” and other obligations come up. Our refund schedule is as follows:
The client has the right to cancel his/her registration in the event.
There is a 50% liability on all conference registrations once made, whether the booking was made through our website or via e–mail/ telephone/ fax.
If the client cancels with more than 8 weeks’s advance notice, GLC shall be entitled to an amount equivalent to 50% of the conference fee and 16 EUR administration charge. In case the client has already made his/her payment, this will be deducted from the conference fee GLC has already received and the remainder will be refunded. If no conference fee has been received prior to the cancellation request, GLC will issue an invoice for the cancellation fee (the amount equivalent to 50% of the conference fee and 16 EUR administration charge), which the client must pay immediately upon receipt. No refunds are available for cancellations received with 8 week’s (or less) advance notice or in case the client fails to attend the conference. In these cases, the full amount of the conference fee must be paid.
In general no VAT is applied based on the Hungarian VAT law with the exception of individual payment [when you would like to pay from your own budget and not from the company’s budget] and for Hungarian companies where 27% VAT is applicable which is refundable at the end of the company’s fiscal year.
Our hospitality partners usually have options available for parking places, however it can change from event to event. If you would like to receive more information on parking please e-mail our colleague susanna.juhasz[at]glceurope.com.
We provide a conference documentation pack which includes: conference agenda, notes pages and attendee information. Soft copies of some of the presentation are available on USB-flash-drives for each delegate. You may bring your laptop, tablet or other mobile device so you are able to review the presentations while they are being presented. Free Wi-Fi will be provided and outlets will be available for recharging computers, mobile devices and phones. We highly recommend you to bring along your business cards and a desire to learn from some of the industry’s leading experts.
The dress code is business casual. Feel free to leave the suits and ties at home this time. We do suggest you bring a sweater or dress in layers, as the conference room temperature may fluctuate.
Any of our staff members at the event will be delighted to help you. You can contact us for free via WhatsApp or Viber or any time over the phone or via e-mail or post.
  1. Get the timing right.
    Many people are afraid to request for training budget, because they can’t seem to find the “perfect time” to do it. Well, there’s no perfect time to ask for it, but there are definitely some moments that are better than others. For instance, if your boss is about to take a two week vacation, he/she might be in a good mood. If he/she just lost a major account, may not be wise at that juncture.
  2. Make a case for yourself
    When you ask for budget, you should be prepared with specific details and explanations about what is in it for the company and you’re superior. If you go into a meeting and just say, “I want to get budget for a conference,” it’s likely that your request won’t be taken seriously. If you want to plan ahead, then you should be prepared to explain the following points:
    1. Start by stating your accomplishments
    2. Show that you’re ready for more responsibility and eager to learn
    3. Describe:
    a) How this event will increase your productivity?
    b) How you will need less supervision
    c) How you can bring back the knowledge to the company
    4. Follow up
You might find free to attend events which are usually organized by a solution/service provider within the industry. Unlike at free to attend events, on a paid event you will find more diverse industry knowledge rather than presentations related to services or solutions.
In case you cannot attend for both days, you can always attend for just 1 day of the event. In this case we will send you all presentations of the 2 days. The participation fee is 70% of the original investment. In case you would like to attend the event for just 1 day please contact us on booking[at]glceurope.com
In case you are busy on 1 of the days, you certainly can split the 2 day conference with one of your colleague. All you need to do is send us an e-mail to booking[at]glceurope.com
We understand that not all senior-level professionals might be available on the dates. As the event is an annual event, most of the attendees try to postpone their engagements or send a small group from their teams to benefit from the conference.

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