ISDA and Linklaters have announced the addition of a new custody function on initial margin offering of the ISDA Create. This will enable users to complete all documentation required for regulatory initial margin on a single platform. ISDA Create is an online solution that automates the process of producing and agreeing documentation and enables the capture of valuable structured legal data. As part of the new functionality, users will initially be able to access bilateral custody agreements and tripartite account control agreements (ACAs) in digital form on the ISDA Create.
ACAs govern the terms of collateral segregation and management between a custodian and two trading counterparties, while bilateral custody agreements govern a pledging client’s unencumbered assets with a custodian. The ability to negotiate bilateral custody documents is already available on ISDA Create. The negotiation of tripartite ACAs will become available later this month. BNY Mellon will be the first custodian to go live on the platform.
The first module, ISDA Create—Initial Margin, was launched in January 2019 and the service will extend to cover other areas and documentation types in the future. Since launch, more than 50 firms have joined ISDA Create for live negotiation of initial margin documentation. These firms include some of the largest buy- and sell-side market participants in North America, Europe, and Asia. In addition, more than 160 firms are actively testing the platform ahead of the phase five and phase six implementation of initial margin requirements in September 2020 and September 2021, respectively.
Related Link: Press Release
Keywords: International, Banking, Securities, Initial Margin, ISDA Create, Margin Requirements, Linklaters, Fintech, OTC Derivatives, ISDA
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).