An Overview of the EBA's Initial Margin Model Validation

The European Market Infrastructure Regulation (EMIR) 3 Refit comprises many moving parts. One notable element is a process revision for the validation of the models used to calculate initial margins. One year after the European Banking Authority (EBA) released the final draft of Regulatory Technical Standards (RTS) addressing how to validate initial margin models outsourced to external providers, additional provisions of the regulation are now taking effect.