Regulation Financiere
EBA Validates ISDA SIMM for EU Banks
The European Banking Authority (EBA) has begun the central validation of the International Swaps and Derivatives Association Standard Initial Margin Model (ISDA SIMM) on March 1, 2026. The ISDA SIMM is a model used by banks to calculate initial margin requirements for over-the-counter (OTC) derivatives. The EBA's validation ensures the model's accuracy and consistency across the EU. This aims to enhance the stability and transparency of the financial system and protect EU citizens from excessive risk.
EBA validates banks' risk models, improving financial stability for EU citizens.