ISDA has published the ISDA SIMM® Methodology, version 2.5, with an effective date of December 3, 2022.
This version of SIMM includes updates based on the full recalibration and industry backtesting of the methodology. The updates also include references to the ISDA SIMM Governance Framework (“Framework”) to emphasize that the SIMM methodology remains a central part of the Framework that SIMM users are expected to adhere to.
The effective date of December 3, 2022 means that SIMM users should use SIMM version 2.5 to calculate the initial margin for Close of Business (COB) on Friday, December 2, 2022 onwards. This means that the first day for exchange of initial margin calculated using SIMM version 2.5 would be on Monday, December 5, 2022.
Documents (1) for ISDA Publishes ISDA SIMM v2.5
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Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...
ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...