Isda pushes to ‘decouple’ Simm calibration from model changes

The
International
Swaps
and
Derivatives
Association
is
planning
to
‘decouple’
the
recalibration
of
its
standard
initial
margin
model
(Simm)
from
more
substantial
model
updates,
which
require
regulatory
approval.

The
proposal,
which
Isda
presented
to
global
regulators
last
week,
aims
to
address
a
quirk
in
new
European
Union
rules
that
threatened
to
derail
a
wider
effort
to
improve
Simm’s
responsiveness
to
market
events.

“We
started
to
think
about
how
we
could
futureproof
a
process
that
would
work