ICE Benchmark Administration Launches Crowdsourcing Facility for ISDA SIMM

The new facility will help market participants meet new margin BCBS-IOSCO rules for non-cleared derivatives.

New York Stock Exchange operator Intercontinental Exchange (NYSE:ICE) today announced that ICE Benchmark Administration (IBA) has launched a crowdsourcing facility for the ISDA Standard Initial Margin Model (ISDA SIMM) ahead of new margin rules for non-cleared derivatives which are effective today.

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New Margin Rules

The IBA crowdsourcing facility, which launched on August 1, 2016, is already supported by 16 global banks who are submitting risk data to the facility with the number anticipated to grow alongside the industry adoption of ISDA SIMM.

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The ISDA SIMM is a common methodology for the calculation of initial margin requirements for non-cleared derivatives. The methodology was developed as part of ISDA’s Working Group on Margin Requirements (WGMR) implementation initiative to help market participants meet new margin BCBS-IOSCO rules for non-cleared derivatives.

IBA was appointed to operate the crowdsourcing facility for ISDA SIMM last year. As the provider of the crowdsourcing facility, IBA manages the aggregation and compilation of risk data so market participants can consistently implement the ISDA SIMM.

The facility also ensures that consensus results obtained via a voting mechanism are used for the margin model’s risk buckets and weightings.

Background

IBA is one of the world’s leading providers of regulated benchmarks. This has been accomplished through IBA’s significant investment in building new, highly-automated, in-house technology for the calculation and distribution of benchmark data, as well as implementing new surveillance and governance procedures across ICE LIBOR, LBMA Gold Price and ICE Swap Rate.

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