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The latest on the prospect of IM Phase 5 relief

Were you at the ISDA legal forum held in New York on 11 June?  If so, we’d love to hear from you.

Risk Magazine reports that Dawn DeBerry Stump, a CFTC Commissioner, lent her support to calls that US regulators should grant relief to firms which reside below the USD 50 million IM threshold.  At first reading, it appears that the envisaged relief would be both (a) from the need to execute IM documentation and (b) from the need to implement the operational systems necessary to monitor IM thresholds and (where necessary) exchange collateral.  However, as you continue to read the article, things are not quite so clear cut.  It’s also not clear whether, if those below the USD 50 million are granted relief from developing the operational systems necessary to support the exchange of IM, the burden – whether as a matter of law or practice – would simply fall on dealers to monitor IM thresholds on behalf of their clients.  This would be very complicated in circumstances where you have multiple managers trading on behalf of a single fund.

So, if you were there, can you help to clear up what was actually said?

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