The International Swaps and Derivatives Association has published a 10-year assessment of the ISDA Standard Initial Margin Model, emphasizing its role as a common, transparent and risk-sensitive framework for calculating initial margin on non-cleared derivatives. The review presents the model as an established market standard rather than announcing a new initiative, reflecting ISDA’s continuing efforts to broaden adoption among derivatives users. The model is permitted by regulators in more than 40 countries, used by more than 400 groups of entities and supported by nearly 70 vendors. ISDA has updated it 17 times and moved to semiannual calibration in 2025 to respond more quickly to changing markets, products and risk dynamics. Its methodology and calibration framework are public, while governance bodies oversee monitoring and maintenance and ISDA shares calibration, backtesting and performance information with regulators. ISDA also highlighted the model as a template for collaborative industry infrastructure, citing its influence on initiatives covering the transition from LIBOR, digital regulatory reporting, standardized notices and derivatives documentation.
2026-09-01ISDA
International Swaps and Derivatives Association marks 10 years of initial margin model used by more than 400 entity groups
The International Swaps and Derivatives Association marked 10 years of the ISDA Standard Initial Margin Model, now permitted in more than 40 countries and used by more than 400 entity groups. The model has received 17 updates and moved to semiannual calibration in 2025, supporting ISDA’s continued push for broader use of transparent, risk-sensitive margin methodologies.