Getting Ready for Phase 5 Initial Margin Implementation

IM Requirements, ISDA Documents & Streamlined IM Negotiation

Wednesday, March 11, 2020
Renaissance Hong Kong Harbour View Hotel
Hong Kong

Member US$650.00

Non-Member US$750.00

Register for Getting Ready for Phase 5 Initial Margin Implementation
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For market participants who will be or anticipate becoming subject to initial margin (“IM”) exchange requirements under the uncleared margin rules in September 2020 (Phase 5), and their advisors, this conference will provide delegates with an overview of the US, EU and Hong Kong IM regulatory requirements. It will also provide delegates with a detailed understanding of ISDA’s new IM credit support documentation and implications of various elections under the documentation in negotiations between counterparties, as well as introduce delegates to documentation that can be used for IM arrangements between custodians and trading counterparties in different jurisdictions, including specific documents designed for use where the IM is held in a Euroclear or Clearstream account. Additionally, the program will provide an introduction to ISDA SIMM and an overview of the ISDA Create – IM negotiation platform, which allows parties to leverage technology to streamline their IM negotiation process.

Print Agenda Getting Ready for Phase 5 Initial Margin Implementation for

8:15 AM Registration and Morning Coffee

9:00 AM Introduction and Welcoming Remarks Jing Gu

Jing Gu, Head of Legal, Asia, ISDA

9:05 AM Initial Margin Requirements for Uncleared Swaps Francis Edwards, Jing Gu

A large number of counterparties are expected to come into scope of initial margin requirements for non-cleared derivatives in September 2020 (Phase 5). This session will provide an overview and comparison of the requirements for posting initial margin under US, EU and Hong Kong regulations and their implications for entities coming into scope of the requirements, including:

  • Entity scope and AANA calculations
  • Geographical and transaction scope
  • Initial Margin Requirements, including segregation requirements
  • Documentation and legal review requirements
Francis Edwards, Partner, Clifford Chance
Jing Gu, Head of Legal, Asia, ISDA

10:00 AM Deep Dive into US and EU Cross-border Application Hilda Loong, Subramanian Natarajan

The derivatives markets are global, and the rules have significant cross-border application. Being in- or out-of-scope of a regime will impact a firm’s AANA calculations, IM threshold monitoring and potentially documentation negotiation. This session will examine scenarios in which firms in Asia might be in- or out-of-scope of the US and EU rules.

Hilda Loong, Executive Director, Morgan Stanley
Subramanian Natarajan, Associate General Counsel, Global Markets, HSBC

10:45 AM Morning Break

11:00 AM Understanding the Next Generation of IM Documentation for Phase 5 Implementation and beyond Monica Chiu, I-Ping Soong, Ross Stewart, Christopher Whiteley

This session will provide delegates with an understanding of the new ISDA Bookstore Documentation (ISDA 2018 Credit Support Annex for Initial Margin (Security Interest – New York Law) and ISDA 2018 Credit Support Deed for Initial Margin (Security Interest – English Law)). The session will focus on elections in the documentation and their implications for negotiation between counterparties. It will also provide an overview of the Collateral Transfer Agreement and Security Agreements that can be used for IM arrangements where the relevant custodian is located in a different jurisdiction from the trading counterparties, including specific documents designed for use where the IM is held in a Euroclear or Clearstream account.

Monica Chiu, Senior Counsel, ISDA
I-Ping Soong, Counsel, Capital Markets, Linklaters
Ross Stewart, Partner, Allen & Overy
Christopher Whiteley, Partner, Ashurst

12:15 PM Luncheon

1:15 PM Understanding the Next Generation of IM Documentation for Phase 5 Implementation and beyond (cont'd)

2:30 PM Custodial Documentation and Onboarding Jing Gu, O’Delle Burke, Filippo Santilli, Luc Vantomme

Setting up segregated accounts with custodians and entering into necessary documentation is a key part of compliance with initial margin requirements. This session will examine some of the key points to consider from the custodian and user perspectives.

Moderator: Jing Gu, Head of Legal, Asia, ISDA
O’Delle Burke, Executive Director, Head of APAC Collateral Services, J.P. Morgan
Filippo Santilli, APAC Head of Liquidity & Segregation, BNY Mellon
Luc Vantomme, Chief Commercial Officer APAC, Euroclear SA/NV

3:30 PM Afternoon Break

3:45 PM ISDA Create – IM: Leveraging Technology in Streamlining IM Negotiation Rishi Kapoor, Hsiang Low

This session will provide an overview of the ISDA Create – IM platform and explain how this new technology solution can be used to streamline the negotiation of IM documents.

Rishi Kapoor, Director, Public Policy, Asia-Pacific, ISDA
Hsiang Low, Managing Associate, Linklaters / Co-Head of Linklaters Nakhoda – Asia

4:20 PM Introduction to ISDA SIMM Methodology and Governance Rahul Advani

  • ISDA SIMM background
  • Description of ISDA SIMM
  • ISDA SIMM Methodology
  • Industry and firm-level governance
Rahul Advani, Director, Public Policy, ISDA

5:00 PM Conference Concludes

Agenda is subject to change.


Venue Location:

Renaissance Hong Kong Harbour View Hotel

1 Harbour Road, Wanchai, Hong Kong

Tel: +852 2802 8888


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ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc.