ISDA Announces Digital Custody Function for Initial Margin
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
CBIRC Consults on Rules for Commercial Banking Subsidiaries in ChinaRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.