The Derivatives Market Institute for Standards (DMIST), an independent body established by FIA in July 2022, has released its third proposed standard, targeting the automation of position transfers in exchange-traded derivatives markets. This initiative seeks to enhance operational efficiency and resiliency while mitigating regulatory and operational risks associated with the current predominantly manual process.
The proposed “Standard Regarding Position Transfers” addresses the movement of open positions between accounts within the same clearing firm or across different firms. Such transfers are critical for risk management, margin optimisation, portfolio balancing, and adapting to changes in ownership due to mergers and acquisitions.
DMIST has initiated a consultation period open to all industry stakeholders, running until 21 March 2025, with a finalised standard expected by the end of Q2 2025. Comments can be submitted via DMIST’s website, with all feedback publicly accessible. This standard marks a pivotal step towards automating position transfer workflows, promising improved communication between clearing members and clients.
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