Suite 222, Level 2
480 Collins Street
Melbourne VIC 3004
10 Minutes with a Treasurer
Kurt Smith CFTP
Profile: Please tell us a bit about yourself
I am the Treasury Manager at Western Power, focusing primarily on strategic debt portfolio risk management. In addition to interest rate and refinancing risks, I also take a keen interest in managing regulatory risk, not only at a portfolio level, but also in influencing policy at both National and State levels through active membership of industry committees.
Discussion Paper CPS226 “Margining and risk mitigation for non-centrally cleared derivatives”
What are the facts?
APRA recently released regulation Discussion Paper CPS226 “Margining and risk mitigation for non-centrally cleared derivatives”.
- The regulations require margin to be posted/collected from counterparties in the form of variation margin (current exposures), and initial margin (potential future exposure) associated with the portfolio of non-centrally cleared derivatives (NCCD’s).
- The regulations primarily apply to Financial Institutions and Systematically important non-financial institutions where it is believed that OTC derivatives trading is taking place other than for hedging purposes, and therefore more open to risk.
The Finance and Treasury Association (FTA) is the peak professional body in Australia for corporate treasurers and senior financial risk managers. Our 800 members consist primarily of senior managers from the top 300 corporations including Group Treasurers, Treasury Managers, Chief Financial Officers and Chief Risk Officers.
The FTA has a strong representation amongst senior management in the broader financial sector, the large accounting and legal firms and other suppliers to the industry. The Association also maintains a broader database of over 3000 consisting of subscribers to the FTA e-news update and who regularly attend professional development events.
The FTA provides valuable opportunities for continuing professional development and a network of like-minded professionals to share knowledge and experience in the treasury and financial risk management areas.