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Title: Collateral Eligibility Templates
Description : As part of the ongoing effort to facilitate efficient implementation of remaining Phases of the Uncleared Margin Rules, ISDA has worked with member firms to develop template collateral eligibility schedules. These schedules are designed to ease the burden of documentation negotiation by providing counterparties with pre-selected eligible collateral types which can be used as a convenient starting point for negotiations. These schedules are intended to form a base level, which individual firms can amend for specific initial margin arrangements.
Ten template schedules have been developed in total to accommodate three permutations of bonds issued by governments and supranationals, two minimum credit qualities (A- / A3 and above and BBB- / Baa3 and above), and differences between regulatory requirements for haircuts in the US, EU and Japan.
To facilitate use of the template schedules, two types of implementing documents have been produced, one for Triparty custodial platforms, and one for Third party custodial platforms. The Triparty agents have produced their own schedules utilizing the template schedules as a starting point.
Full details of the schedules can be found in the PDF below.
- Collateral schedules introduction memo and access information.
- Triparty vs. Third Party Segregated Account Structure
- ISITC’s Third Party Custodian Cash and Security Segregated Collateral