In an effort to help the industry prepare for initial margin (IM) requirements ahead of September 1, 2020 (Phase 5), ISDA is facilitating a voluntary early disclosure exercise for parties which expect they may exceed the Phase 5 IM threshold in one or more jurisdictions. This is similar to previous ISDA-facilitated multi-lateral disclosure exercises for Phases 1, 2, 3 and 4.
This process is subject to important Terms and Conditions, a copy of which may be accessed below.
This process is based on voluntary disclosure of actual or anticipated in-scope information to ISDA in a pre-set format. ISDA will then collate that information and share with all participating firms by sending it to the email addresses provided by those firms for this purpose. This includes the opportunity for entities in Phases 1, 2, 3 or 4 that have provided in-scope information in previous similar exercises to share this information or to provide updated information. We refer to this as Phase 1-5 Threshold Disclosure information, and the collection and distribution by ISDA of this information to participating firms is subject to the Terms and Conditions.
ISDA welcomes participation from potential Phase 5 firms as well as new or updated disclosures from Phase 4 firms.
Firms can participate in this voluntary exercise by:
Providing names and email addresses of those individuals within your organization who should receive the completed spreadsheet once the self-disclosure exercise is done.
Initial Deadline for Submission of data is May 31, 2019. ISDA will continue to accept disclosures on an ongoing basis and periodically circulate an updated spreadsheet.
By participating in this voluntary exercise, firms confirm their agreement with the Terms and Conditions, a copy which may be accessed below. Any firm participating by submitting Phase 4 or Phase 5 information also states the following:
“Based on applicable regulations, we currently expect that, in respect of the swap trading entities in the group of companies listed in the attached spreadsheet (or any specific legal entities in our group listed in the attached spreadsheet), either those entities or the swap counterparties facing those entities will be subject to initial margin requirements with effect from September 2019 or September 2020 as specified.”
By submitting Phase 1-5 Threshold Disclosure information, you shall be deemed to represent and warrant that such information has been disclosed and can be distributed by ISDA in accordance with the Terms and Conditions without violating any law, agreement or understanding regarding the confidentiality of such information as detailed in the Terms and Conditions, and confirm to ISDA that:
you acknowledge that you have read, understood and agreed to be bound by the Terms and Conditions , and to comply with all applicable laws and regulations.
you consent to your information being distributed by ISDA to each of the firms that also elects to provide and exchange Phase 1-5 Threshold Disclosure information.
you represent and warrant to ISDA that: (i) ISDA’s transfer of such information will not violate any law, agreement or understanding regarding the confidentiality of such information and (ii) ISDA may rely upon such representation and warranty.
you acknowledge and agree thatISDA shall not be liable, whether for negligence or otherwise, to any participant for any form of damages, whether direct, indirect, special, consequential, incidental, punitive or otherwise that might arise in connection with the performance by ISDA of the request to collect and distribute Phase 1-5 Threshold Disclosure information, except in the case of ISDA’s gross negligence, fraud or willful misconduct. All participants agree to waive any claim, whether for negligence or otherwise, that might arise against ISDA in connection with its performance of this request to collect and share Phase 1-5 Threshold Disclosure information.
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ISDA Symposium® – Phase 4, Phase 5 and the Future of Initial Margin (IM) Documentation IM Requirements, ISDA Documents & Streamlined IM Negotiation Wednesday, June 12, 2019