Initial margin

2020 Looming Large

+0

It has sometimes felt like there’s barely been time to pause and take a breath over the past 12 months given the size and importance of the issues the industry faces. Well, get used to it, because 2020 will be the year the rubber really hits the road for some of these issues. Whether benchmark reform, initial margin requirements or local implementation of revised Basel rules, industry efforts will have to step up a gear – and ISDA will be working hard to develop and roll out solutions to help implementation in 2020.

Benchmarks

Share
Category

Joint Trade Association Letter on Cash and Money Market Funds as Initial Margin

+0

On August 1, 2019, ISDA sent a letter to the CFTC and US Prudential regulators, co-signed by Managed Funds Association (“MFA”), Securities Industry and Financial Markets Association’s Asset Management Group (“SIFMA AMG”), Investment Company Institute (“ICI”), Institutional Money Market Funds Association (“IMMFA”), and Securities Industry and Financial Markets Association (“SIFMA”). The letter requests that US regulators:

Share
Category

ISDA Response to US Proposed Rule-making on Swap Margin Requirements

+0

ISDA has published the following response to US proposed rule-making on swap margin requirements.

Share
Category

Margin Xchange…we hardly knew you

+0

Highlander 1986, “There can be only one!” or for a younger generation, “When you play the game of thrones, you win or die”.

Share
Category

ISDA Self-Disclosure Exercise for Regulatory IM Phases 4 and 5

+0

Following the July 23rd Statement by BCBS and IOSCO revising the timeline for compliance with initial margin requirements and the end of the Phase 5 AANA calculation period in the US, ISDA is rerunning the multi-lateral IM self-disclosure exercise.

Share
Category

ISDA Create to Add New Custody Legal Function for Initial Margin

+0

ISDA and Linklaters have announced the addition of a new custody function on ISDA Create’s initial margin (IM) offering, which will enable users to complete all documentation required for regulatory IM on a single platform. BNY Mellon will be the first custodian to go live on the platform.

Share
Category

ISDA Publishes ISDA SIMM™ v2.2

+0

ISDA has published the ISDA SIMM™ Methodology, version 2.2, with an Effective Date of December 1, 2019. This version of SIMM includes updates based on the full recalibration and industry backtesting of the methodology.   It also includes additional granularity for the FX asset class, the removal of curvature margin from equity volatility indexes and an alteration to allow for annual calibration of credit non-qualifying intra-bucket correlations.

Share
Category

A First for Derivatives Markets

+0

Anyone familiar with the history of the derivatives market will be able to tell you when the first swap was negotiated – in 1981, between IBM and World Bank. Thirty-eight years on, the market has seen the latest important landmark: completion of the first fully electronic negotiation of relationship-level swaps documentation between two counterparties.

Share
Category