Getting Ready for Initial Margin: The Steps to Take (Japanese)

Each September until 2020, increasing numbers of entities will be required to meet initial margin regulations as the threshold level for compliance reduces. Preparation for meeting these requirements will take significant time, and will involve intensive work to ensure systems, processes and documentation are in place.

ISDA has published a new fact sheet (in Japanese) that sets out the steps firms should take when preparing to comply with regulatory initial margin requirements. These are not necessarily presented in chronological order – the precise order and timing will depend on a firm’s specific circumstances.

STEP 1: Identify in-scope entities early

STEP 2: Make early disclosures to counterparties

STEP 3: Exchange information on compliance

STEP 4: Identify special cases

STEP 5: Establish custodial relationships

STEP 6: Prepare for compliance

STEP 7: Negotiate/execute documentation

STEP 8: Finalize preparations

Click on the PDF below to read the full list of steps.

Documents (1) for Getting Ready for Initial Margin: The Steps to Take (Japanese)

Recognition of Cross-product Netting is Critical

US regulators are in the process of making important changes to the regulatory capital framework by proposing modifications to the enhanced supplementary leverage ratio, which should help stop it from acting as a non-risk-sensitive constraint on bank capacity – a...

ISDA, GFXD Response to FCA on SI Regime

On September 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association responded to the Financial Conduct Authority's (FCA) consultation paper CP25/20 on the systematic internalizer (SI) regime for derivatives and bonds. ISDA and the...

ISDA Response on Clearing Costs

On September 8, ISDA responded to consultation by the European Securities and Markets Authority (ESMA) on a draft regulatory technical standard on clearing fees and associated costs (article 7c(4) of the European Market Infrastructure Regulation (EMIR)). In the response, ISDA...