Several key aspects of project management for the "Initial Margin" project have been undertaken, in line with the new ISDA 2023 regulations for OTC trades. Average Aggregated Notional Amount (AANA) drives the phase for Initial Margin implementation, calculated at the consolidated group level, and until a group-level threshold of 50 million CHF IM with a counterparty is reached, in-scope entities need not exchange regulatory IM, though IM calculation remains obligatory. Critical decisions for the project implementation encompass custodian selection, collateralization, and IM calculation models; therefore our key objectives were:
I) Redacting oper points documentation and project planning for all the differet departments involved in the process. Overseeing interactions with counterparties for our client entities, providing day-to-day close cooperation and updates , as well as step-by-step coordination of necessary activities regarding information data exchange and KYC procedure. II) Critical vulnerabilities within the process have been analyzed, and support has been provided to the IT department in problem-solving activities through a primary backtest of the entire end-to-end solution III) Assistance has been given in completing essential business forms for opening new cash flow accounts with the client’s custodian of choice
CCP Initial Margin
IV) Close collaboration has been maintained with the legal department at PWC, both in Italy and Switzerland, compiling and amending various documents useful for the conduct of the legal process involving the onboarding of different entities, involving some of the largest banks in the world. V) Documentation and project planning, as well as providing PMO support for a parallel project related to ETD and OTC clearing.Through the project phases, took part in several kickstart workshops to draft key legal documents in initializing collaborative relationships necessary for cash and securities allocation. VI) Collaborating on the development and testing of a new traded asset class, and participating in the testing phase of the interface required for receiving and sending SWIFT messages. VII) Redacting the project’s wiki to keep every department involved updated through every completed step of the process, updating every point with the respective documentation and key information VIII) Step-by-step analysis of every type of trade to define which assets would go into scope, and therefore included within the automated calculation process for financial exposure IX) Collaboration with counterparties in defining the best guarantee scheme applicable to entities, coordinating the implementation activities of it
For further information please contact:
