In 2016, ISDA launched the ISDA SIMM™ Crowdsourcing Facility, operated by ICE Benchmark Administration, to harmonize certain firm level inputs to the ISDA SIMM™ to reduce disputes in initial margin calls.
Differences in firm sources which determine the risk buckets for the Credit and Equity risk classes may result in discrepancies in the assigned risk bucket, leading to discrepancies in the IM amount. The ISDA SIMM Crowdsourcing Facility is an industry utility created to reduce such discrepancies by using crowd-sourced data analytics to help resolve disputes regarding the appropriate risk bucket for the SIMM calculation. In the event of a bilateral discrepancy in the risk bucket for the credit or equity risk classes, the ISDA SIMM Crowdsourcing Facility has been designated as the default utility for resolving disputes, but parties may mutually agree otherwise.
ISDA encourages firms to participate in the ISDA SIMM Crowdsourcing Utility. For additional information, see the Fact Sheet below, contact IBA@theice.com or consult IBA’s website: https://www.theice.com/iba/isda-simm/crowdsourcing-facility
Documents (2) for ISDA SIMM Crowdsourcing Facility
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Heath Tarbert, president of Circle, speaks with ISDA CEO Scott O’Malia about the primary applications of stablecoins in derivatives markets and how key legal considerations – including bankruptcy treatment and settlement finality – are being addressed as digital assets become...
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Yuval Rooz, co-founder and CEO of Digital Asset, speaks with ISDA CEO Scott O’Malia about the growing momentum behind tokenization, the most compelling use cases for derivatives markets and the remaining hurdles that need to be addressed to enable widespread...