Widening the Net: The Impact of MiFID II Changes on the Margining of FX Forwards
Lombard Risk Market Intelligence: Collateral Management
MiFID II changes the categorisation of FX forwards and considerably widens the range of market participants in scope for compulsory bilateral margining. Is your firm ready?
Drawing on the views of market participants, Lombard Risk is pleased to release its latest white paper which considers potential impacts of the regulation coming into effect January 2018 and the responses needed.
This white paper provides a review of the key regulation, historical analysis of ‘The Great Repapering’, viewpoints on the potential buy-side resource impact under the regulation and a broader review of the implications of FX forwards in MiFID II. It also touches upon what the buy-side should focus on now in order to develop a comprehensive collateral management programme and how technological innovation is the key to MiFID II compliance—especially for funds trading FX forwards and those funds that are new to bilateral margining.