New research by BNY Mellon, the global leader in investment management and investment services, and Insurance Risk magazine has identified growing pressure on firms.
Insurance Risk’s third collateral management survey in conjunction with BNY Mellon reveals how insurers are grappling with the challenge of central clearing for over-the-counter derivatives.
Brought into effect by parts of the Dodd-Frank legislation in the United States and by the European Market Infrastructure Regulation (EMIR) in Europe, the new regime promises a fundamental readjustment of practice in the area of collateral management. Now, for most trades, firms will clear through a central counterparty and will have to post both initial and variation margin, with the former being cash or sovereign bonds and the latter cash only.
The survey, conducted by Insurance Risk magazine, found that:
One-hundred and eleven insurers participated in the survey, representing a sample with more than $9.88 trillion of assets, compared with $7.45 trillion last year.
To learn more, download the Collateral Management Survey 2014.
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