ISDA Create is a new platform that allows firms to negotiate and execute derivatives documentation online. Developed by ISDA and Linklaters Nakhoda, ISDA Create will dramatically reduce the time it takes to negotiate documentation and allow firms to digitally capture, process and store the data within those documents.
Video: On January 31 we launched ISDA Create – IM with ISDA but that’s not all we have in mind for ISDA Create, see what else is coming…
The first module, ISDA Create – IM, is an online industry solution that will enable firms to negotiate and execute new margin documentation to meet regulatory initial margin requirements.
Video: What is ISDA Create - IM?
About ISDA Create – IM
A wide universe of buy-and sell-side firms will come into scope of initial margin (IM) regulations in 2019/20, creating a need to efficiently negotiate IM documentation with large numbers of counterparties.
ISDA Create – IM will provide the means for firms to efficiently negotiate IM collateral documentation with a large number of counterparties simultaneously, and to deliver the documentation electronically into firms’ internal systems. The tool will also make commercial data contained in the IM documentation easily accessible, along with the metadata associated with the negotiation process. This data can then be used for risk management, resource management and other applications.
Advantages of ISDA Create – IM
> make the negotiation process far more efficient and less time consuming from start to finish.
> provide powerful commercial, risk management and resource management functions, data and analytics.
> remove the need for any post-execution transfer of data from negotiated documentation into internal systems and the chance for error during such a data transfer.
It will allow firms to automate the creation and delivery of IM documentation, and negotiate and execute IM documentation with multiple counterparties simultaneously. This is all done online while providing flexibility to take one or more of these steps offline if required.
The system allows standard elections to be made, but also allows firms to customize on a party-by-party basis. There are no restrictions on what parties may agree on a bilateral basis on the platform.
The system automatically reconciles both standard elections and bespoke provisions exchanged, and flags the differences in an efficient and easy-to-read way.
It allows parties to embed their standard workflow by allowing approvals of deviations from preferred elections to be requested and recorded through the platform, providing an audit trail.
The data on the platform is stored digitally, and can be pulled into a firm’s internal systems for storage and/or further use.
The platform is being built with the ability to evolve over time as market needs change.
Other ISDA documents in complementary areas may be added in the future as required by users.
ISDA Create – IM will be launched in early 2019, shortly after the publication by ISDA of its next generation IM collateral documentation. ISDA has also mandated Linklaters to act as its global counsel in connection with the industry consultation and drafting of its next generation IM collateral documentation.
Linklaters and The International Swaps and Derivatives Association, Inc. (ISDA) have today launched the full version of ISDA Create – IM, a new online solution that automates the process of producing and agreeing initial margin (IM) documentation and facilitates the creation of valuable structured legal data.
Linklaters has partnered with The International Swaps and Derivatives Association, Inc. (ISDA) to develop a tool that will allow firms to create, negotiate and execute initial margin collateral documentation completely online.