Blog

PRA advises UK banks to use liquidity and capital buffers to continue supporting customers
21/04/2020

The PRA have released a statement and Q&A advising banks that they should use their capital and liquidity buffers to support customers and the UK economy. Banks are required to have substantial liquidity buffers – cash and short-term bonds in order to repay short term obligations as they fall due, at a level well over 100%. In the Q&A, the PRA have stated “During this time of Covid-19 related disruption to the…

A View on the CARE Act & Interagency Statement by US Regulatory Agencies
17/04/2020

The impact of the coronavirus is everywhere, including the regulatory reporting world. Aside from the challenges for institutions of making sure that filings are made accurately and on-time with more people working remotely than ever before, the regulatory agencies themselves have had to work to clarify the impact of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and its interaction with Troubled Debt Restructurings (section 4013) as well as their views on…

What are the key trends within the collateral space right now
16/04/2020

Automation, connectivity and both pre- and post-trade optimisation are without a doubt the four key trends in the collateral space right now. The need for greater automation is prevalent due to the increase in margin call volumes and potential disputes created by UMR and COVID-19. By automating the margin workflow via COLLINE’s straight-through processing rules, the collateral management process becomes one of exception management. Automation enables margin managers to concentrate…

Getting prepared for helping your clients and customers as they recover from the pandemic
15/04/2020

While economists ponder what shape the economic recovery will be post-pandemic, in the financial services world it has been remarkable seeing how organisations are adopting new working practices unimagined at the start of 2020. One interesting observation is that co-working spaces are now facing major issues as teams are all working from home, as noted by Sifted. Contact centres must temporarily lock their doors and spend on buying laptops so their teams…

Digital quarantine
08/04/2020

So here is how things are: we've been confined to our homes for a few weeks now, the hashtag #keepsafe is everywhere and we watch various videos on how to thrive on our new lifestyles (teleworking, e-learning, e-aperitifs, home exercise). Even my parents have gotten into it and they are now permanently on WhatsApp, Skype, Internet and videoconferencing! What was once occasional it has now become their daily life. In…

How will UMR affect the collateral marketplace?
07/04/2020

Since the 2008 financial crisis, regulators have made huge strides towards stabilising the global financial system via regulatory reform. The US Dodd-Frank Act, Basel III, the European Market Infrastructure Regulation (EMIR) and other global equivalents have provided a tidal wave of regulatory change which, in the current economic climate coupled with stressed market conditions, has exasperate institutions’ antiquated IT infrastructures, the lack of regulatory compliance, increased margin and dispute volumes,…

FCA and PRA provide flexibility on Senior Managers & Certification Regime for dual regulated firms in response to the Covid-19 pandemic
06/04/2020

On Friday 3rd April, the FCA and PRA issued a joint statement outlining their expectations of dual regulated firms regarding the Senior Managers and Certification Regime (SM&CR), and how a firm’s governance procedures may be impacted by coronavirus (Covid-19). It is clear the FCA and PRA are keen to provide flexibility to dual regulated firms during these uncertain times, and have provided updates in six key areas of SM&CR, a summary…

PRA extends reporting deadlines to ease pressure on firms
03/04/2020

The PRA has issued a statement regarding its approach to regulatory reporting and Pillar 3 disclosures in response to COVID-19 for UK banks, building societies, designated investments and credit unions. The PRA will accept delayed submission for regulatory reporting where the original remittance deadlines fall on or before 31st May 2020. The list of reports that can be delayed for a month are as follows: COREP Solvency FINREP NSF Large exposures and concentration risk Leverage ratio Asset…

Accelerate Your Journey Towards UMR Compliance with VERMEG
31/03/2020

The insidious presence of COVID-19 and its impact on society and the financial markets knows no bounds. The financial markets have been in meltdown causing huge volatility and increased margin call volumes, thus causing firms to re-evaluate their priorities where Phase V UMR compliance is concerned. Firms are now having to take a more tactical approach and ensure the continued operation and the management of market risk is paramount in…

A Window of Opportunity
30/03/2020

2020: the year to reset your regulatory reporting foundations? How about some focus on data gathering, data quality, operating processes and mitigating key person risks for regulatory reporting? Before Basel III finalisation (a.k.a. Basel 3.1 or Basel IV)… A few weeks ago, I’d been planning to focus this article on what firms could do to make use of the gap between now and the next wave of Basel-influenced changes (SA-CCR, FRTB etc).…