OTC Confirmations

Client

The Operations division of a global investment bank.

Issues that we helped identify

The client engaged us to provide resource augmentation support within equity derivatives post-trade services in response to increased regulatory demands for Master Confirmations Agreements (MCA), OTC confirmations and MIS reporting.

The project consisted of the following activities:

  • OTC confirmations: incoming and outgoing structured equity OTC confirmations support
  • Equity MCA documentation and electronic on-boarding support
  • Regulatory reporting: daily, weekly and monthly MIS reporting
  • Quality control MI database management and reporting for multi-asset class OTC’s

How did we help our client?

  • Deployed a team of six consultants on-site with both equity derivatives OTC confirmations expertise and Management Information (MI) experience
  • Assisted with drafting of structured/exotic equity derivatives confirmations for the outgoing team
  • Reduced outstanding unsigned confirmations by meeting stringent incoming execution timelines relating to recent regulatory commitments (CFTC and EMIR regulation)
  • Drafting MCA equity documentation as well as on-boarding clients onto matching platforms
  • Reporting: producing MI statistics for both internal management and for regulatory reporting submissions

How did the project benefit our client?

  • Skilled drafting team assisted in drafting highly structured OTC confirmations within stringent time frames to meet the organisations regulatory turnaround times
  • Backlog of outstanding OTC confirmations was reduced within the project’s requirement which allowed the organization to meet regulatory outstanding confirmation targets
  • MCA on-boarding team reduced the number of counterparties who had not been on-boarded onto an electronic matching platform and therefore allowed the organisation to meet its regulatory electronic matching targets
  • MI reporting provided a full range of quality control and ensured operational effectiveness with the continued requirements under CFTC, Dodd Frank and EMIR timescales for accurate and timely reporting

Project Time and Resource

We deployed six consultants, on-site for a period of at least seven months, with continued engagement.

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