Major Global Bank - Regulatory Compliance Programme

Client Issue

Global regulations have brought about fundamental changes to the way the bilateral OTC derivatives industry exchanges collateral via daily margining.

PwC's client required support on the negotiation deadlines, assistance with client outreach and the coordination and tracking of Variation Margin Credit Support Annex negotiations.

Without modification of provisions, our client's clients would no longer be able to trade with their counterparties. This was, of course, a significant issue for the bank.

PwC Approach

PwC supported the bank on the negotiation deadlines for phases one and two, and assisted with client outreach and the co-ordination and tracking of VM CSA negotiations.

Furthermore, PwC helped deliver a series of outcomes underpinning the successful delivery of Bilateral Margin - including the design of the Brexit Outreach programme. At its largest point, the PwC team grew to support peak times in the project, with as many as 22 staff supporting the bank.

We worked alongside the client's legal team to develop an innovative approach to contract generation and management, in the face of new financial regulations and uncertainty.

The solution had technology at its core, using Exari as the legal technology platform to support the client with the new variation margin regulations. We built on this to help solve some of the challenges for the Brexit Outreach programme.

Outcome and benefit for client

Through working with PwC, the bank has achieved:

  • Significant time savings to generate a large volume of contracts
  • Programmatic generation of contracts allowing increased quality and consistency of client communications and contracting
  • Less human interaction with contract generation, leading to increased efficiency and fewer errors

Contact us

Michael Lines

Michael Lines

Contract Solutions Lead, PwC United Kingdom

Tel: +44 (0)7826 946177

Dermot Hartigan

Dermot Hartigan

Senior Manager, Contract Solutions, PwC United Kingdom

Tel: +44 (0)7483 362047

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