TriOptima: Key UMR Challenges Explained

Key UMR challenges can be broadly categorized into two groups - IM calculation and IM collateral management, but firms may also face additional challenges regarding volumes.

First, the volume of in-scope firms across phases 5 and 6 of UMR (approximately 300 in phase 5, and more than 600 in phase 6) creates a challenge as firms compete for mutual resources at the same time, whether that’s custodians, counterparties, vendors, or consultants. Second, the volume of tasks required to prepare for UMR – and the number of participants impacted right across the organization (Trading, Risk, Technology, Legal, and & Operations) may create its own set of project delivery challenges.

Neil Murphy discusses these issues and more in the podcast below.