GMAC October 25, 2021 Meeting

Panel 3: Dodd-Frank Act Implementation

Presenters:

• Tara Kruse, Global Head of Infrastructure, Data and Non-Cleared Margin, ISDA

• Kyle Brandon, Managing Director, Head of Derivatives Policy, SIFMA

• Colin Lloyd, Partner, Cleary Gottlieb Steen & Hamilton LLP

Topics:

• Swap Data Reporting

o Reporting 2.0

o Digital Regulatory Reporting

o Cross border

• Uncleared Margin 

o Phases 5 & 6 

o GMAC Report 

o Portfolio Margining 

• Swap Dealer Capital and Financial Reporting

o Policy issues

o Implementation challenges
New Regulatory Reporting Requirements: Re-writes of technical standards

Oct / Nov 2021 

(expected)

UK-EMIR 

consultation 

paper

25 May 2022

CFTC re-write 

COMPLIANCE 

DATE

Q4 2021 / Q1 

2022 (expected)

EMIR Refit 

RTS/ITS 

finalised

Q3 2022

UPI 

implementation

Q4 2022 – Q1 

2023 (expected)

ASIC re-write 

COMPLIANCE 

DATE

Q3 / Q4 2023 

(expected)

EMIR Refit 

COMPLIANCE 

DATE

8 Nov 2021

SEC SBSR 

COMPLIANCE 

DATE 1

14 Feb 2022

SEC SBSR 

COMPLIANCE 

DATE 2

14 Apr 2022

SEC SBSR 

COMPLIANCE DATE 3

Q2 2023 

(expected)

MAS re-write 

COMPLIANCE 

DATE

Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

CFTC re-write EMIR Refit APAC re-writes (# of fields subject to change)

128 fields (current CFTC reporting has 138 fields + 

“Any Other Terms”)

203 fields (current EMIR reporting has 129 fields) ASIC – 124 fields

Single-sided reporting Reconciliation performed on 146 fields MAS – 136 fields

Single-sided reporting Dual-sided reporting JFSA – 148 fields (consultation paper to be 

published) 

ISO 20022 message mandated ISO 2022 message mandated

UPI required for all trades ISIN or UPI required for all trades
Dealer X

Dealer Y

▪ Every industry participant 

left to implement their own 

version based on 

interpretation of artefacts

▪ Loss of inter-operability 

between solutions

▪ Pervasive reconciliation 

issues and other 

operational inefficiencies

Vendor Z

Resulting in fragmented and 

inconsistent 

implementations & 

operational Inefficiencies

From Fragmented and Diverse Market Implementations of the Regulation Today

3

Graphs and Spreadsheets of 

Trading Scenarios

Tables of Data Field Mappings

Regulatory Text Artefacts

INDUSTRY PARTICIPANTS

Implement their own solutions based on individual interpretations

REGULATORS & TRADE ASSOCIATIONS

Publish rules and develop best practices

Copyright © 2021 by International Swaps and Derivatives Association, Inc.
INDUSTRY PARTICIPANTS

Implement the same code in their solutions 

✓ Standardised model to express data 

driven rules

✓ Directly operational output (software)

✓ Eliminates reconciliation issues by 

promoting a single interpretation of 

regulation as code

✓ Enables inter-operability of solutions

Dealer X

Dealer Y

Vendor Z

Consistent Industry Implementations

How can the market implement regulation with the CDM?

4

To a Mutualised Approach for Better Regulatory Oversight

Graphs and Spreadsheets of 

Trading Scenarios

Tables of Data Field Mappings

Regulatory Text Artefacts

REGULATORS & TRADE ASSOCIATIONS

Publish rules and develop best practices

Copyright © 2021 by International Swaps and Derivatives Association, Inc.
The Challenge: CFTC Rewrite/ EMIR Refit + ISO 20022 inbound and ISO 20022 outbound

5

CFTC rewrite and EMIR Refit brings major challenges, including aggressive compliance timeframes in 2022 and 2023 along with 

reporting to TRs using ISO 20022. Using DRR via CDM, parties would still be able to use CSV, FpML, etc.: 

XML FpML

ISO 20022

Regulators

ISO 20022

Reporting Parties w/ DRR

CFTC 

Rewrite

CSV Prop

EMIR 

Refit

Trade Repositories w/ DRR

Other 

regimes

CDE

-

Copyright © 2021 by International Swaps and Derivatives Association, Inc.

IM Phase-in Estimates

• ISDA estimates show that as a result of the changes to the IM phasing announced by BCBS and IOSCO:

• Expected number counterparties and relationships will be:

• Expected number of relationships that would breach the IM Threshold with GRID and SIMM within the first two 

years of their regulatory obligation:

Phase AANA Range Counterparties Relationships

Phase Five €50bn<AANA≤€750bn 314 (29%) 3,616 (40%)

Phase Six €8bn<AANA≤€50bn 775 (71%) 5,443 (60%)

Total €8bn<AANA≤€750bn 1089 (100%) 9,059 (100%)

Phase AANA Range Relationships IM ≤ EUR50M IM > EUR50M

Phase Five €50bn<AANA≤€750bn 3,616 2,125 to 2,595

(59 to 72%)

1,021 to 1,491

(28 to 41%)

Phase Six €8bn<AANA≤€50bn 5,443 4,205 to 4,620

(78 to 85%)

823 to 1,238

(15 to 22%)
GMAC Subcommittee on Margin Requirements Recommendations

Restrictions on Money Market Funds

➢ Recommendation: Eliminate undue restrictions on the activity of eligible MMFs to transfer assets 

through securities lending, securities borrowing, repurchase agreements, and reverse repurchase 

agreements.

Consolidation Requirement for Seeded Funds

➢ Recommendation: In accordance with the BCBS‐IOSCO framework and other global jurisdictions, 

provide an exemption from the consolidation of seeded funds with their sponsors for purposes of 

calculating AANA and MSE during the limited seeding period in order to provide a level playing field 

domestically and globally for these seeded funds.

Separate IM Threshold for Separately Management Accounts

➢ Recommendation: Allow each SMA to be treated as a distinct entity to which a separate regulatory IM 

Threshold will apply, thereby giving each manager much‐needed certainty and control over when an SMA 

is at or near the IM Threshold.