Uncleared Margin Rules

What Are Uncleared Margin Rules (UMR)?

The Uncleared Margin Rules (UMR) are regulations that were introduced to mandate the transfer of collateral between counterparties to cover the risk of certain OTC trades. The rules are for the transfer of Initial Margin as Variation Margin was already being exchanged for these trades.

Uncleared Margin Rules Phases

The Uncleared Margin Rules were introduced in phases based on the Average Aggregate Notional Amount (AANA) – a yearly measure of a counterparty’s uncleared activity based on an agreed set of rules.

The last phases of UMR to be introduced were Phase 5 (in September 2021 for an AANA over $50bn) and Phase 6 (in September 2022 for an AANA over $8bn).

Compliance With Uncleared Margin Rules

Compliance with Uncleared Margin Rules requires the calculation of AANA to determine whether a firm is in scope and then calculation of Initial Margin based on an approved margin algorithm. For most people this means using either Grid or ISDA SIMM. Discover more about the cost effective way to comply with uncleared margin rules here.

Learn More About UMR

Discover more of our content around UMR by clicking one of the links below. Additionally, learn other definitions of key margin terminology with our A-Z Margin Terminology page. Lastly, learn more about OpenGamma by watching our demo and taking a look at our product and solutions pages.