ISDA Announces SIMM Licensing Program
The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of a licensing program for ISDA’s proprietary and patent-pending Standard Initial Margin Model (SIMM) for non-cleared derivatives, offered commercially under the name ISDA SIMM™.
The purpose of ISDA SIMM™ is to establish a single model that meets regulatory standards, which all authorized licensees can use to exchange collateral in a manner that is consistent with margin requirement rules. By using a single framework to calculate initial margin, licensed counterparties can reduce the potential for disputes. A common methodology also permits timely and transparent dispute resolution and allows consistent regulatory governance and oversight.
As part of the ISDA SIMM™ licensing program, service providers will receive patent and copyright approvals necessary to implement and use the SIMM in connection with the services provided to their respective clients, as well as rights to the ISDA SIMM™ trademark for use in connection with the offering of such services. There is no charge for market participants to use ISDA SIMM™ to calculate margin with respect to their own non-cleared trades.
ISDA SIMM™ is US Patent Application No. 62/154,261, titled ‘SIMM Methodology for Calculating SBA Margin’.
Source: ISDA
