ISDA SIMM Solution

Vector Risk provides a multi-tenancy SaaS solution for SIMM. As a SaaS solution, Vector Risk dramatically reduces implementation timeframes, has little project risk, requires no new IT infrastructure, and provides regulatory evergreening.

The standard initial margin model (SIMM) is a common methodology to help market participants calculate initial margin on non-cleared derivatives under the framework developed by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions.

T Reg IM requires counterparties to OTC derivatives to post margin on a segregated basis to cover current and potential future exposure during the period between the last margin collection and the time it takes close out derivative positions following the default of the counterparty.

The standardized margin methodology was developed by the International Swaps and Derivatives Association, and is intended to reduce the potential for disputes and create efficiency through netting of exposures. The model applies a sensitivity-based calculation across four product groups: interest rates and foreign exchange, credit, equity, and commodities.