The European Banking Authority has launched a consultation on standardized reporting requirements for counterparties seeking validation to use the International Swaps and Derivatives Association’s Standard Initial Margin Model under the European Market Infrastructure Regulation. The framework would support the EBA’s central validation and ongoing model monitoring, competent authorities’ supervision, and calculation of annual validation fees. Entities with significant over-the-counter trading activities would submit comprehensive quarterly data covering trading activity, margin disputes, initial margin adjustments, non-use of the model and back-testing. Other entities would provide a substantially smaller set of activity and fee information annually, while fee-related reporting would apply annually to all reporting entities. Responses are due by Nov. 2, 2026. The EBA intends to adopt a directly applicable decision by the end of 2026 and release the final technical package in March 2027. The first reporting reference date is expected in December 2027, with data collected directly from reporting entities in the first quarter of 2028.
European Banking Authority2026-08-05
European Banking Authority launches consultation on proportionate ISDA SIMM validation reporting framework
The European Banking Authority is consulting on standardized reporting for counterparties seeking validation to use ISDA SIMM under EMIR. Significant OTC market participants would face comprehensive quarterly reporting, while less active entities would submit limited information annually. The first reference date is expected in December 2027, with submissions in the first quarter of 2028.