A central pillar of EMIR regulatory compliance is the adoption of more rigorous risk management rules, one being a procedure for dispute resolution.
Financial and non-financial counterparties must have agreed procedures for the identification, recording, monitoring and resolution of disputes relating to the exchange of collateral between counterparties. The procedure should record the length of time the dispute remains outstanding, the counterparty and the amount disputed. Counterparties are also required to maintain a log of all current and historical disputes and achieve this with only minor changes in their current margining process.
To meet this requirement, Brady Credit Risk has developed Dispute Tracker, an out of the box add-on component providing functionality to track and audit collateral disputes. Highlights are:
- Track disputes until they are resolved
- Track incoming and outgoing disputes separately
- Record disputed call memos and attach to Dispute Tracker
- Print and send dispute notices to the counterparty directly from Dispute Tracker
- Record comments and save history about each dispute
- Identify trade types in dispute and record in Dispute Tracker
- Maintain audit trail of every dispute tracked
- Close and freeze a dispute