ISDA Publishes ISDA SIMM® Methodology, Version 2.6

ISDA has published the ISDA SIMM® Methodology, version 2.6, with an effective date of December 2, 2023.

This version of SIMM includes updates based on the full recalibration and industry backtesting of the methodology. The SIMM methodology remains a central part of the SIMM Governance Framework that SIMM users are expected to adhere to.

The effective date of December 2, 2023 means that SIMM users should use SIMM version 2.6 to calculate the initial margin for Close of Business (COB) on Friday, December 1, 2023 onwards. This means that the first day for exchange of initial margin calculated using SIMM version 2.6 would be on Monday, December 4, 2023.

Documents (1) for ISDA Publishes ISDA SIMM® Methodology, Version 2.6

A Positive Step to Improve the FRTB in the EU

As the Basel III capital reforms are finalized for implementation in key jurisdictions, ISDA is maintaining a laser focus on making sure the rules are robust and risk-appropriate. Simply put, if capital requirements are set disproportionately high, this will have...

Appropriate Capital Rules Critical for Markets

“Setting capital requirements for globally active banks is a fine balanc­ing act. As regulators learned during the global financial crisis, insuffi­cient capital creates vulnerabilities in the banking sector that can have damaging consequences in times of stress. However, if banks...