EBA begins EU central validation of ISDA SIMM
27 February 2026 Europe
Image: butenkow/stock.adobe.com
The European Banking Authority (EBA) has announced it will begin the central validation of the International Swaps and Derivatives Association (ISDA) Standard Initial Margin Model (SIMM) on 1 March 2026.
The decision on arrangements for ISDA SIMM validation sets out the operational framework governing the EBA’s new validation function.
This marks a key milestone in the implementation of the EBA’s new role as central validator of pro forma models, aimed at ensuring consistent, robust, and transparent supervisory oversight of initial margin models across the EU.
Under the amended European Market Infrastructure Regulation (EMIR), the EBA is mandated to establish and operate an EU-level validation function for pro forma initial margin models used for non-centrally cleared over-the-counter derivatives.
Coinciding with this announcement, the EBA publishes the decision on arrangements for initial margin model validation of ISDA SIMM, which will also enter into force on 1 March 2026.
The decision details the operational arrangements for the validation function, including onboarding and application procedures, governance and cooperation mechanisms with competent authorities and ISDA, and the criteria for ongoing monitoring and assessment of SIMM model changes.
The decision on arrangements for ISDA SIMM validation sets out the operational framework governing the EBA’s new validation function.
This marks a key milestone in the implementation of the EBA’s new role as central validator of pro forma models, aimed at ensuring consistent, robust, and transparent supervisory oversight of initial margin models across the EU.
Under the amended European Market Infrastructure Regulation (EMIR), the EBA is mandated to establish and operate an EU-level validation function for pro forma initial margin models used for non-centrally cleared over-the-counter derivatives.
Coinciding with this announcement, the EBA publishes the decision on arrangements for initial margin model validation of ISDA SIMM, which will also enter into force on 1 March 2026.
The decision details the operational arrangements for the validation function, including onboarding and application procedures, governance and cooperation mechanisms with competent authorities and ISDA, and the criteria for ongoing monitoring and assessment of SIMM model changes.
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