Adenza passes ISDA SIMM® v2.6 certification

Adenza today announced that it has passed ISDA SIMM v2.6 certification, a full two months ahead of the compliance deadline. With this certification, Adenza demonstrates its proactivity on SIMM changes, enabling clients to anticipate margin impacts and related collateral costs.

Due to unprecedented market volatility and a tumultuous first quarter, ISDA’s benchmarking exercise led to an off-cycle recalibration in May 2023 for the first time since implementation of the UMR Phase 1 requirements in addition to the standard annual set of parameter updates. Consequently, getting a head start on SIMM updates is instrumental for firms to quickly incorporate the changes and manage trading and collateral cost impacts.

Faced with the compounding effect of methodology changes, exponentially growing UMR exposures, and potentially newly breached thresholds, clients will welcome an early delivery that allows them to simulate and adjust ahead of the December 2023 compliance date. With Adenza’s continuous delivery process, clients can rely on timely access to new versions and be ready for upcoming changes.

Adenza’s Calypso Initial Margin solution − part of a truly integrated front-to-back-to-risk platform − provides end-to-end margin exposure calculations and collateral processing for cleared and uncleared trades.

It is very important that users switch to the ISDA SIMM methodology v2.6 by the December 2, 2023 effective date, as this version includes the latest updates, based on a full recalibration of the model. We are pleased to work with licensed vendors such as Adenza to prepare for v 2.6 well ahead of the implementation date.

- Tara Kruse, Global Head of Data, Infrastructure, and Non-Cleared Margin, ISDA

Given the volatility of today’s market it is critical to be ready for additional off-cycle changes. With this early certification, we have taken a big step forward in giving clients room to anticipate and holistically optimize the impact of SIMM v2.6 on their business for the ultimate go live in December.

- Gil Guillaumey, Head of Strategy, Capital Markets, Adenza

 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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