Getting Ready for Phase 5 Initial Margin Implementation
IM Requirements, ISDA Documents & Streamlined IM Negotiation
Thursday, March 19, 2020Seoul
For market participants who will be or anticipate becoming subject to initial margin (“IM”) exchange requirements under the uncleared margin rules in or after September 2020 (Phase 5), as well as their advisors, this conference will provide delegates with an overview of the US, EU and Korea 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 methodology, its implementation and use, and an overview of the ISDA Create – IM negotiation platform, which allows parties to leverage technology to streamline their IM negotiation process.
This conference will be conducted in English or Korean. Simultaneous translation in Korean and English will be provided. (Presentation materials will be offered in English.)
8:15 AM Registration and Morning Coffee
8:50 AM Introduction and Welcoming Remarks
9:00 AM Initial Margin Requirements for Uncleared Swaps Seong-Koo Cheong
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 Korea 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
Additional Speakers to be Announced.
10:00 AM Deep Dive into US and EU Cross-border Application Seong Eun Kim
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.Seong Eun Kim, Managing Director and Senior Counsel, Goldman Sachs Asia (LLC), Seoul Branch
10:45 AM Morning Break
11:00 AM Understanding the Next Generation of IM Documentation for Phase 5 Implementation and beyond Monica Chiu, Junhee Kim, Jisuk Kim, Hyo-Yeon Yoon
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
Junhee Kim, Legal Counsel, AEJ Masters Documentation, Legal Department, Nomura Financial Investment (Korea) Co., Ltd.
Jisuk Kim, Attorney, Kim & Chang
Hyo-Yeon Yoon, General Counsel, Citibank Korea Inc.
12:15 PM Luncheon
1:15 PM Understanding the Next Generation of IM Documentation for Phase 5 Implementation and beyond (continued)
2:15 PM Custodial Arrangements and Onboarding Hyelin Han, Jungmin Kim, 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: Hyelin Han, Director, Public Policy, ISDA
Jungmin Kim, Director, Securities Financing Department, Korea Securities Depository
Filippo Santilli, APAC Head of Liquidity & Segregation, BNY Mellon
Luc Vantomme, Chief Commercial Officer APAC, Euroclear SA/NV
3:15 PM Afternoon Break
3:30 PM ISDA SIMM Methodology, Implementation and Use Taekoo Kim
- ISDA SIMM background
- ISDA SIMM methodology and calculation
- Reconciling IM differences
- ISDA SIMM monitoring and backtesting
4:30 PM ISDA Create – IM: Leveraging Technology in Streamlining IM Negotiation 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.Hsiang Low, Managing Associate, Linklaters / Co-Head of Linklaters Nakhoda – Asia
5:00 PM Conference Concludes
Agenda is subject to change.
To be announced