AcadiaSoft has extensive experience in helping in-scope firms to develop and support different aspects of uncleared margin rules (UMR). We work with a number of consultancy firms that can assist your firm with all the information, analysis and guidance to establish your model validation, operational setup and governance process and, where relevant, to secure regulatory approval to use SIMM™* for your bilateral derivatives franchises.

Leveraging our partners helps to ensure that your firm is fully compliant with the regulations regarding utilization of the SIMM™ model, including the daily, quarterly and annual tasks spanning monitoring, backtesting and validation.

Benefits of using a specialist consultancy

  • Experience and knowledge accumulated from working closely with the vast majority of IM Phase I, 2, 3 and 4 firms currently using SIMM™
  • Implementation of a tailored project that focuses on your specific model validation and governance requirements
  • Advice on analysing and presenting backtesting and validation output, both in relation to the generic ISDA backtesting documentation as well as portfolio-specific output
  • Consultation on best practice governance frameworks to ensure that SIMM™ is managed appropriately from a counterparty risk and operational perspective
  • A cost effective option compared to utilizing internal resources for these complex tasks and a simpler, more efficient dispute resolution process
  • Monitors and determines when to initiate Agreement generation or amendment
  • Establishes automated cross-functional workflow enabling scalability

Our consultancy partners have:

  • Completed core, strategic modelling, back-testing and validation projects at global Tier 1 banks and leading Central Counterparties (CCPs).
  • Delivered solutions to satisfy US, UK and EU regulators.
  • Extensive CCP and dealer risk-model governance, IM model monitoring, model backtesting and validation experience.
  • Partnered on this initiative to capitalize on AcadiaSoft’s unique SIMM™ experience and to create a key industry resource to help firms gain approval to use ISDA SIMM™.