Linklaters partners with ISDA to unveil automation tool for financial institutions
The online tool, called ISDA Create-IM, will allow banks and financial institutions to electronically create, negotiate and execute initial margin (IM) documentation as the universe of market participants subject to such requirements grows exponentially over the next two years.
“The development and launch of this tool is a critical step for our industry as we all look to leverage efficiencies enabled by technology. Bringing together an unprecedented amount of industry input from the most active sell-side and buy-side participants in the market, we have built something that really is driven by their needs. It’s a great example of what can be achieved when you combine the innovative thinking of the market, lawyers and developers.”
Katherine Tew Darras, ISDA’s General Counsel, says:
“Negotiating IM documentation typically takes significant time and resource, and has to be repeated over and over again with each counterparty. ISDA Create – IM will drastically improve the efficiency of this process, enabling parties to deliver a document to multiple parties at the same time, and then to negotiate changes on a bilateral basis using the platform.
Partha Mudgil, COO of Nakhoda at Linklaters, says:
“This Initial Margin tool is an example of how we are using our legal knowledge to identify opportunities for automation and to design a bespoke and transformative product that helps drive efficiencies and enable data-based insights for our clients. But it also shows how the relationship between lawyers and clients is changing. We are no longer seen as ‘black-ink’ advisers, instead, working in partnership, we’re able to pull together the brightest minds to create and deliver solutions that will have real and practical results for the market.”