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Orchestra

FULL SCORE OR JUST A SOLO? SGSS PLAYS THE PART FOR YOU!

NEW REGULATIONS: WHICH IMPACT ON OTC DERIVATIVES?

Since the 2008 financial crisis, regulator initiatives on OTC derivatives have flourishedall over the world under the close supervision of the Financial Stability Board. The US response came in the form of the Title VII Dodd-Frank act on 15 July 2010 and the EU adopted EMIR, the European Market Infrastructure Regulation which came into effecton 16 August 2012.

* For Financial Counterparty. More details in SGSS White Paper on EMIR available on demand.

OTC DERIVATIVES REGULATIONS: NEW CHALLENGES

  1. COMPLEXITY
  • Shifting regulatory framework
  • Various Clearing Houses across various jurisdictions
  1. SIGNIFICANT OPERATIONAL EVOLUTIONS
  • Connectivity with Clearing Brokers
  • Two OTC derivatives processing chains to manage:

Standard OTC Derivatives: clearing status, daily management of margin calls

Non standard OTC Derivatives: Collateral administration according to CSA standards

  1. HIGHER COLLATERAL REQUIREMENTS & IMPACTS ON FINANCIALPERFORMANCE
  • Clearing broker and clearing house fees
  • Costs related to the selected segregation model
  • Opportunity costs related to the nature of posted collateral
  • Additional operational costs (set-up and run)

SGSS PROPOSES PLAYING ALL OR PART OF A 5 MOVEMENT SCORE FOR YOU

  • SGSS has developed ORCHESTRA, a complete range of services to support OTC derivatives users all along the processing chain with a solid end-to-end operating model for both financial counterparties and corporates.
  • Connected to its internal clearing broker NEWEDGE and its clients’ custodians,SGSS’ operating platform is fully industrialized and manages cleared and bilateral OTC derivatives.
  • Outsourcing possibilities are numerous, ranging from fully integrated solutions to modular bricks, depending on your needs.

 

SGSS industrialised and connected operating platform: helping you to comply with EMIR