ISDA and Linklaters have announced the launch of a new variation margin (VM) module on ISDA Create that embeds the ISDA Clause Library for credit support documentation within the relevant VM documents on the platform. This module, launched in response to industry demand, allows users to draft and agree VM documents faster and more efficiently, as well as capture the resulting structured legal data for use in downstream operations.
The launch is the latest extension of ISDA Create, and follows publication of key custodial documentation and the ISDA Master Agreement with the embedded ISDA Master Agreement Clause Library on the platform last year. This is part of a broader initiative by ISDA to standardize and digitize its definitions and legal documentation, which includes publication of ISDA’s first natively digital definitions and the launch of the MyLibrary electronic documentation platform.
“ISDA Create users have been asking us to extend the benefits of online negotiation to VM documentation since we first launched the platform in 2019 to help firms comply with initial margin requirements. With this release, we now have all of the most-used ISDA documentation on the platform, as well as the utility of the ISDA Clause Library for credit support documentation. This will help the derivatives market leverage structured data for both the Master Agreement and credit support documentation, while simultaneously allowing users to have more efficiency and transparency in their negotiations,” said Katherine Tew Darras, ISDA’s General Counsel.
Launch of the VM documentation comes amid strong recent growth in the use of ISDA Create as buy- and sell-side firms and custodians comply with phase six of the regulatory initial margin requirements for non-cleared derivatives, scheduled to come into effect from September 1.
“Since the start of 2022, platform usage is up 300% and, with the launch of the VM documents, we expect that volume to increase at an even greater rate. We’re really excited about the next chapter of the platform and can see a future where the entire market has access to all the incredibly valuable data that’s in their documents instantly,” said Douglas Donahue, CreateiQ board member and Finance Partner at Linklaters.
ISDA Create is an online solution powered by Linklaters’ proprietary technology platform, CreateiQ. Additional information on ISDA Create and CreateiQ is available on the ISDA Create InfoHub and the Linklaters | CreateiQ website. To schedule an online demo of the platform, please contact email@example.com.