Initial Margin Model News Today

Paper documents and manual processes continue to dominate the derivatives industry, affecting speed and efficiency. ISDA is confronting these issues with mutualized, tech-centered solutions. From satisfying regulatory requirements to improving document processing, these initiatives are propelling the market into its digital future.

<p>Good morning, everyone.</p>
<p>It’s great to be back in Chicago again, a city that is truly steeped in financial history. It’s here that the Chicago Board of Trade introduced the first standardized futures contracts in 1865, a big step on the path to the development of modern derivatives markets. It’s also here that the Chicago Butter and Egg Board, a forerunner of CME Group, was founded in 1898, reinforcing Chicago as a focal point for...

<p><span>Good morning, and a very warm welcome to Chicago.</span></p>

<p><span>Recent banking failures in the US and the acquisition of Credit Suisse by UBS are the latest in a series of stress events to have rocked financial markets, which includes the March 2020 dash for cash and the September 2022 UK liability driven investment (LDI) crisis. In the case of Silicon Valley Bank, the collapse appears to have been caused by risk management failures combined with a high interest rate environment. In other cases, such as the dash for cash and the LDI cris...

<p><span>Good morning, everyone. Welcome to ISDA’s Annual Legal Forum. This is the first time we’ve been able to run this particular event in person since before the pandemic, so it’s great to have you all here in the room. I certainly missed having the ability to interact and engage with fellow lawyers at events like these – being able to network, share ideas and collaborate with others is extremely valuable, so thank you all for coming.</s...

The September 1 deadline for IM passed without any major disorder.

Phase 6 of UMR goes live on September 1.

<p><span>If there’s one lesson from the most recent round of initial margin (IM) requirements in September 2021, it’s that compliance takes much longer than most people anticipate. With the next phase now less than six months away – one that will bring more entities into scope than ever before – it’s critical this lesson is learned. The reality is there’s very little time left to comply. Those firms that wait to start their ...

<p><span>ISDA has today been recognized in the Risk Awards 2022 for the ISDA Standardized Approach (SA) Benchmarking initiative, which has won the Innovation in Technology category.</span></p>

<p><span>ISDA and the Institute of International Finance (IIF) welcome the consultative report </span><em><a href="https://www.iosco.org/library/pubdocs/pdf/IOSCOPD686.pdf">Review of Margining Practices</a></em><span>. The Associations appreciate the large amount of data shared by BCBS, CPMI and IOSCO. The report paints a very accurate picture of the events of 2020 in relation to margin practices.</span></p>