Aima launches OTC derivative guidelines

Aima launches OTC derivative guidelines

The Alternative Investment Management Association (Aima) has published over-the-counter (OTC) derivatives clearing guidelines for asset managers.

Aima’s Guide to Sound Practices for OTC Derivatives Clearing provides guidance on the new regulatory framework in the US and EU, which affects most OTC derivative transactions cleared globally.

“These guidelines are unprecedented in detail and scope. We hope they are of use to our member firms as they set out to navigate the increasingly complex legal and operational requirements introduced under the post-crisis OTC derivatives clearing reforms,” said Jack Inglis, CEO of Aima.

The guide is supplemented by a due-diligence questionnaire for clearing members, which is intended to help asset managers during the process of evaluating different clearing members and clearinghouses.

“This initiative underlines our shared commitment to central clearing, which reduces counterparty-credit risk and systemic risk, and to the role that we all can play in helping to ensure the smooth and timely implementation of these important regulatory reforms,” added Inglis.

The drafting of both papers was assisted by Simmons&Simmons and Seward&Kissel, and supported by a working group of Aima’s manager and sell-side members. The papers are sponsored by CME Group.

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