Banks have spent the last four years gamely preparing for and complying with IM regulations. Phases 1-3 have been challenging, the current phase 4 promises more of the same. The market has long been aware that phases 1-4 are mere kittens to the phase 5 (probably angry) tiger. Useful initiatives- negotiation platforms, custodian portals, standardised […]

Lehman Brothers International (Europe) v ExxonMobil Financial Services BV [2016] EWHC 2699 (Comm) Whilst many know of the infamous collapse of Lehman Brothers, not many are aware of how the fallout from this has helped to clarify important business terms. In a recent dispute between Lehman Brothers (Lehman) and ExxonMobil (Exxon), the High Court was […]

Hot on the heels of ESMA’s 31 January 2019 ‘blind eye’ statement, on 5 February 2019, the EU Council issued a press release confirming it had reached agreement with the EU Parliament on certain aspects of the EMIR REFIT programme. Broadly, the changes are that: A new category of “small financial counterparty” will be created. […]

DRS recently hosted a well-attended IM Breakfast Roundtable at the Gherkin. A distinguished list of panellists included Mayer Brown’s Ed Parker, Margin Reform‘s Chetan Joshi and Bank of New York Mellon’s Mark Higgins. Focused primarily on the imminent challenges of IM Phase 4, participants were drawn from the sellside; the event’s success effectively mandates a […]

On 23 January 2019, the FCA published Consultation Paper CP19/4*** “Optimising the Senior Managers & Certification Regime and feedback to DP16/4 – Overall responsibility and the legal function” (the “Consultation Paper”).  The consultation period closes on 23 April 2019, with a Policy Statement slated for Q3 2019 and a ‘go live’ date for the new […]

The deadline for compliance with Phase 4 and Phase 5 of the IM requirements is miles away, isn’t it?  Isn’t it…? The truth is that, whether you like it or not, the clock is already ticking.  Whether anyone has told you or not, the countdown has already begun. Why worry about it now? The classic […]

Opinions obviously vary, but for me there are very few opportunities to be glad not to be Australian. Here is one for already punch-drunk IM lawyers and compliance personnel. The largest four banks in New Zealand are Australian-owned- ANZ, ASB, BNZ and Westpac. New Zealand is not a G20 member and has therefore been (relatively) […]

The CFTC’s Office of the Chief Economist (OCE) has responded to industry petitions to mitigate the widely-forecasted IM Phase 5 oncoming storm. Readers will recall the July 2018 ISDA/SIFMA white paper previewing the phase 5 population explosion and recommending various reduction strategies: Raising the in-scope AANA threshold from $8bn. to $100bn. Postponing mandatory compliance until […]

A question that has been ignored, until very recently, is how firms will deal with cross-border derivative contracts when the UK leaves the EU in March 2019. Leaving the single market without either EEA membership or a trade agreement covering financial services will result in complications for existing derivative contracts. With approximately £26 trillion of […]