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
Latest
Response on Dividend Stripping
On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy...
ISDA Launches DRR Tracer Agent
ISDA has launched an artificial intelligence (AI) agent for its Digital Regulatory Reporting (DRR) solution that will bring greater transparency to users by tracing the rules and decisions that have guided the development of the DRR. The ISDA DRR Tracer...
US FX Derivatives Review
ISDA has expanded its SwapsInfo website to include data on US foreign exchange (FX) derivatives, extending the platform's coverage beyond interest rate and credit derivatives to a third over-the-counter derivatives asset class. The US FX Derivatives Review covers trading activity...
Response to FCA on Post-trade Transparency
On October 16, ISDA responded to the Financial Conduct Authority’s (FCA) consultation CP26/30. While the consultation is principally focused on cash equity market structure and transparency, ISDA responded to questions on the potential inclusion of equity swaps in the scope...