ISDA Regulatory Margin Self-Disclosure Letter

The ISDA Regulatory Margin Self-Disclosure Letter (the “ISDA SDL”) is a tool intended to assist market participants with the exchange of the necessary information to determine if, and when, their trading relationship will become subject to regulatory margin requirements for non-cleared derivatives.  The ISDA SDL’s standardization of the information exchange enables market participants to identify and classify themselves and their counterparties by disclosing information, which includes general biographical information, entity status and cross-border status under the applicable margin regulations and notional thresholds for the purposes of determining phase-ins under the regulations.

The ISDA SDL includes embedded logic to allow market participants to answer the fewest number of questions but still provide counterparties with the information necessary to determine if, and when their trading relationship will become subject to margin requirements.  As of October 28, 2016, the ISDA SDL is available on ISDA Amend (the “ISDA Amend SDL Tool”).  The ISDA Amend SDL Tool provides the additional efficiency of electronic submission of the information needed and benefits from information previously provided on ISDA Amend.  The initial jurisdictions covered by the ISDA Amend SDL Tool are Canada, the European Union, Japan, Switzerland and the US (CFTC and Prudential regulator requirements).  The ISDA Amend SDL Tool will be expanded to cover additional countries when margin regulations are finalized in additional jurisdictions.  Submission of data via the ISDA Amend SDL Tool allows market participants to share a single data entry with multiple counterparties, track responses, reconcile and automate large volumes of information consumption.  To the extent possible, the ISDA Amend SDL Tool will leverage the current information that clients have already submitted on ISDA Amend.

The ISDA Amend SDL Tool can be accessed here: https://www.markit.com/Product/ISDA-Amend  

Paper on Proposal 6 on Margin Transparency

On November 16, ISDA published a document that looked at proposal 6 in the final Basel Committee on Banking Supervision (BCBS), Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) report on margin transparency. Proposal...

Tender Issued for DC Administrator Role

ISDA and the Credit Derivatives Governance Committee have issued an invitation to tender for an independent regulated entity to serve as the administrator for the Credit Derivatives Determinations Committees (DCs), which includes assuming the role of DC secretary. The DC...

ISDA SIMM: The Standard for IM Calculations

The ISDA Standard Initial Margin Model (ISDA SIMM) plays an important role in ensuring margin calculations are consistent, transparent and aligned with global best practices and regulatory requirements. Since its launch in 2016, the model has been rigorously tested, regularly...