The global, economic tsunami caused by the COVID-19 pandemic is, among other things, spurring questions about the best way firms can calculate initial margin (IM), given the recent onset of wildly volatile financial markets. As you will recall, IM is essential for firms that engage in derivative transactions that are not centrally cleared. Firms are… Read More >>
Firms Secured $158 Billion in IM Last Year
The level of initial margin (IM) gathered in 2018 by 20 top securities firms for non-cleared derivative transactions grew by 47 percent to approximately $157.9 billion compared to $107.1 billion at the end of March 2017, according to the latest margin survey of the International Swaps and Derivatives Association (ISDA). The survey results, released at… Read More >>
ISDA Publishes CDM Blueprint for the Industry
ISDA Wants CDM to Restructure the Market The International Swaps and Derivatives Association (ISDA) has published the “full version of the ISDA Common Domain Model (CDM) for interest rate and credit derivatives,” which ISDA officials hope will serve as “a common blueprint” for restructuring the foundations of the market. To facilitate that restructuring, ISDA will… Read More >>
ISDA Survey: Number of Dealers to Shrink While Costs Rise
Respondents to an ISDA derivatives industry survey have expressed optimism about the future of their market, but almost half of those surveyed say that the number of derivatives dealers is declining, and that the cost of using derivatives is increasing. In particular, the survey found that 47.3 percent of respondents say “the number of derivatives… Read More >>
ISDA-Led Group Wants to End Libor, Euribor Benchmarks
The International Swaps and Derivatives Association (ISDA) is leading a group of securities industry associations in a drive to move financial markets closer to alternative risk-free rates (RFRs) and away from interbank offered rates, the “ibor” behind the Libor and Euribor benchmarks applied to contracts and business practices. The Libor, Euribor and Tibor benchmarks are… Read More >>
2018 Predictions: Advances are Needed for DerivOps IT
(Editor’s Note: In a look to derivative processing in 2018, FTF News reports upon the remarks of the CEO of International Swaps and Derivatives Association). Although not making specific predictions, Scott O’Malia, CEO for ISDA, on Nov. 30, laid out a blueprint for overhauling derivatives processing that could gather steam in 2018. Speaking at ISDA’s… Read More >>
ISDA’s SIMM Gets a Refresh
The Standard Initial Margin Model (SIMM), a methodology for calculating initial margin for non-cleared derivatives instruments developed by the International Swaps and Derivatives Association (ISDA) is a work-in-progress, confirms Scott O’Malia, ISDA CEO, in a new posting for the ISDA blog derivatiViews. The need for new initial margin calculation requirements drove the creation of SIMM… Read More >>
Support Growing for ISDA’s Initial Margin Standard
Support is growing for a new methodology for calculating initial margin for non-cleared derivatives instruments that was developed by the International Swaps and Derivatives Association (ISDA). Simultaneously, exchange and clearinghouse operator, the Intercontinental Exchange (ICE), reports that the ICE Benchmark Administration (IBA) group, a provider of regulated benchmarks, launched a crowdsourcing facility in support of… Read More >>
ISDA to CFTC: Exempt SEF-Compliant European Venues
In publishing a set of principles intended to help derivatives trading firms compare U.S. and European Union (E.U.) trading venues, officials at the International Swaps and Derivatives Association (ISDA) are asking that CFTC officials consider a new exemption for established trading venues in Europe. “If EU trading venues are determined to achieve the same objectives… Read More >>
BNP Paribas Securities Services to Use SimCorp’s Platform
BNP Paribas Securities to Use SimCorp’s Dimension Platform BNP Paribas Securities Services reports that it has implemented the SimCorp Dimension system to streamline accounting processes for its clients. The firm has implemented the SimCorp Dimension platform to manage its integrated accounting offering “as well as other services in its comprehensive product suite,” according to SimCorp… Read More >>
