Following the July 23rd Statement by BCBS and IOSCO revising the timeline for compliance with initial margin requirements and the end of the Phase 5 AANA calculation period in the US, ISDA is rerunning the multi-lateral IM self-disclosure exercise.
In an effort to help the industry be best prepared for Initial Margin requirements ahead of September 1, 2020 (Phase 5) and September 1, 2021 (Phase 6), ISDA is facilitating the voluntary early disclosure of expectations of meeting the revised regulatory margin level thresholds. This is similar to previous ISDA-facilitated multi-lateral disclosure exercises for Phases 1-5, but the Phase 5 thresholds have been adjusted along with the addition of Phase 6. Optional data fields have been added for disclosure of preferred custodian, triparty or third party custodial structures and ISDA SIMMTM calculation intention.
ISDA encourages participation by parties that previously disclosed, but which have had a change or addition to their disclosure information, as well as participation by parties which have not previously participated.
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 Sept 27, 2019.
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. We refer to this as “Phase 1-6 Threshold Disclosure information.” ISDA plans to support this exercise on an ongoing basis in the run-up to September 1, 2021, and will send periodic updates, as warranted.
By submitting Phase 1-6 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 (a copy of which is attached for your reference) without violating any law, agreement or understanding regarding the confidentiality of such information, 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 1-6 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 that ISDA 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 1-6 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 1-6 Threshold Disclosure information.