ISDA Announces SIMM Licensing Program for Non-Cleared Derivatives

ISDA 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&Amp;trade;.

By establishing SIMM, ISDA aims to create 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. According to ISDA, SIMM creates a single framework to calculate initial margin so that licensed counterparties can reduce the potential for disputes.

See: ISDA Press Release.