Implement a fully automated Initial Margin (IM) Solution before UMR Phase 5 deadline – A case study


One of the major pain points of Uncleared Margin Rules (UMR) compliance is changes to the settlement process. UMR requires firms to instruct a host of new settlement locations, including triparty agents and third-party custodians.

For most, this is uncharted territory and will be complicated for firms captured in next UMR phases to manage. Firms need broad integration and connectivity options to have a real-time view of the eligible collateral for settlement and instruct that settlement.

How one bank ensured compliance to UMR Phase 5 using Clearstream and CloudMargin

A recent case study is showcasing how a top Asian bank leverages the combined Clearstream and CloudMargin service offering to implement a fully automated Initial Margin (IM) solution before the Uncleared Margin Rules (UMR) Phase 5 deadline.

As captured in Phase 5 of the UMR, the bank was seeking a more automated and robust system to address the new regulatory requirements and the increased obligations they would bring.

Automated IM workflow with our Triparty Collateral Management Service

To meet all operational challenges, the bank chose to combine CloudMargin’s ability to deliver a fully automated IM workflow with Clearstream’s market-leading Triparty Collateral Management Service (TCMS). With CloudMargin, the bank could obtain full STP call processing with out-of-the-box connectivity to AcadiaSoft’s MarginManager and Clearstream’s collateral optimisation and triparty settlement capabilities with an implementation of only a couple of weeks.


With CloudMargin and Clearstream’s Triparty Collateral Management Service offering, the bank will comply fully with UMR by the Phase 5 deadline and greatly reduce cost and risk, and more broadly, will generate unprecedented efficiencies.