Britain’s decision to leave
the European Union (EU) will have little or no impact on ISDA agreements, legal
experts said on a webinar last week.
Speaking about the
impact of the Brexit decision on the legal framework for derivatives ...
Thursday marks an important day for financial markets with a fragmented regulatory regime about to come into force, and NDF and FX options markets are right in the firing line. Will the already fragile liquidity picture in these markets worsen?
The International Swaps and Derivatives Association (ISDA) last week announced the live launch of the ISDA Standard Initial Margin Model (SIMM), an industry standard methodology that it says is being widely adopted by market participants to calculate initial margin for non-cleared derivatives trades. The launch comes as the US granted a last minute reprieve from the non-cleared margin rules in the face of opposition from market participants and announcements from four major centres that they were delaying enforcement of the rules
The International Swaps and Derivatives Association (ISDA) has published a whitepaper calling for greater standardisation and automation of derivatives market infrastructures.
The new paper, The Future of Derivatives Processing and Market Infrastructure, highlights a number of challenges with existing structures and processes, and recommends several steps the derivatives industry can take to create efficiencies – in particular, by embracing opportunities for further standardisation.
"The derivatives industry has become reliant on legacy infrastructures and processes that have been layered on top of each other over time. That might be the result of historical acquisitions, where the respective systems haven't been fully integrated. More recently, the sheer pace of regulatory change has meant firms have been under pressure to tackle the next pressing deadline. The result is a derivatives infrastructure that is duplicative and based on incompatible operating standards, and this isn't sustainable," says Scott O'Malia, CEO of ISDA.
The International Swaps and Derivatives Association (ISDA) has announced two senior changes in its organisation.
Tara Kruse has been appointed head of ISDA’s margin for non-cleared derivatives implementation effort. She replaces Mary Johannes, who is leaving the association to pursue other interests.
Kruse joined ISDA in 2013 as a director in the data and reporting team, and was appointed co-head of data, reporting and FpML in March 2015.
As head of the ISDA Working Group of Margining Requirements (WGMR) initiative Kruse will be responsible for helping the industry prepare for the variation margin ‘Big Bang’ on March 1, 2017, and the extension of initial margin requirements to phase-two entities in September 2017.
She will also oversee forthcoming updates to the ISDA Standard Initial Margin Model (SIMM) and the management of the SIMM governance framework.
The International Swaps and Derivatives Association (ISDA) and IHS Markit have announced the launch of the ISDA 2016 Variation Margin Protocol on ISDA Amend.
The protocol automates the process for amending existing collateral documents or setting up new agreements in order to comply with new variation margin requirements going into effect on March 1 2017.
The ISDA Amend platform enables counterparties to electronically share specially designed questionnaires through a centralised online platform, removing the need for bilateral negotiations. Counterparties can make elections under the protocol, including which regulatory regimes apply and which method they will use to make the required changes to their documentation. The service also automates the reconciliation of questionnaires between counterparties.