ISDA has published a collateral agreement that aims to help derivatives users comply with new rules for margining of uncleared derivatives.
The new document is the 2016 Credit Support Annex for Variation Margin for use with New York law.
The margining framework for non-cleared derivatives was developed by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions, and will become effective for the largest derivatives users from September 1, 2016.
For other entities within the scope of the regulations, initial margin requirements will be phased in over a four-year period, but variation margin obligations will come into force from March 1, 2017.
US prudential regulators published their final version of the margining rules in October, followed by the CFTC in December. European and Japanese regulators released their final standards in March 2016.
ISDA will publish further documents in the coming months, including an English and Japanese law version of the variation margin document, CSAs for initial margin, and a Protocol to facilitate the amendment of existing contracts to comply with the new requirements.