Onboarding Process for OTC Derivatives Clearing
Timeline
Step 1 Kickoff
- Introduction to the services
- Initial meeting with responsible departments and teams
- Analysis to determine whether client needs are aligned with offering
Clarification of client demand
Step 2: Risk Analysis
- Risk and limit assessment by Swedbank's credit and risk departments
- Client submits current trading budget and positions
Risk evaluation/ approval
Step 3: Workshops
- Workshops, discussions and planning with involved parties of the client
- Detailed analysis of operational and technical requirements
- Investigation of workflows and processes
Requirement assessment
Step 4: Onboarding
- Offer/pricing agreement
- Legal documentation
- Technical and operational implementation and testing
- Account openings at Swedbank and Clearing House
- Staff training
Account, legal & technical set-up
Step 5: Go-Live Preparation
- Pilot deal
- Exchange of collaterals
- Migration/ backloading of existing trades
- Resolution of go-live issues
First cleared trade
The implementation of all steps normally takes from one to six months depending on discussions between the parties.
If you are interested in clearing OTC derivatives with us, please download: Request for Proposal regarding clearing of OTC derivatives (PDF)
Clearing agreement/ISDA FOA & CSA | Swedbank, client |
---|---|
Collateral agreement, cleared derivatives | Swedbank, client |
Agreement for account segregation level for cleared derivatives | Swedbank, client |
Execution agreement(s) | Client, counterparties (incl. Swedbank) |