Begin measuring your AANA in advance of the observation period.
Track warning thresholds over time, to plan ahead and manage when your firm may move in or out of scope.
Use optimization techniques to reduce AANA and potentially reduce of the cost of UMR.
As the calculation period for AANA approaches, it is clear to those familiar with the rules that understanding and monitoring the AANA calculations as early as possible is vital for any firm.
This need for firms to be proactively manage their AANA is heightened by the fact there are now changes in the monitoring periods and compliance dates for Post-Phase 6 firms to be aware of. Most importantly, effective management allows firms to reduce business costs and optimize trading exposure.
Long-term monitoring strategies are also essential for firms wanting to analyze their AANA levels or, for firms already captured under UMR, balancing exposure across counterparty agreements, potentially moving out of scope.
Download our latest guide, as we showcase how your firm can turn the UMR delay into an opportunity with AANA Monitoring and Optimization Strategies in 2023. Our guide includes:
- UMR overview
- Understanding your AANA
- AANA calculation and jurisdictional differences including calculation period and product scope
- Strategies on how firms that avoided Phase 6 can take steps to ensure they continue to be out of scope
- Guidance for Phase 6 firms who can review and modify trading behaviour, reducing, or possibly eliminating, the cost of UMR