On October 27, 2021, ISDA® and IHS Markit issued a reminder to market participants to be aware of potential disclosure requirements in connection with Phase Six initial margin (IM) regulations for uncleared swaps that apply to certain parties as of September 1, 2022 if they may cross the average aggregate notional amount (AANA) threshold that would bring them within the scope of the requirements (see Practice Note, Global Margin Compliance for Uncleared Swaps). ISDA notes that under Phase Six, the largest scope of market participants to date will become subject to regulatory IM requirements – either directly through their regulatory obligations or indirectly through the obligations of their counterparties.

A participant will be subject to the IM requirements if, during the calculation period, its AANA of outstanding uncleared derivatives transactions, through their "direct regulatory obligations or their counterparties' obligations", exceeds $8 billion. Parties that breach or expect to breach this threshold must put their counterparties and custodian on notice as soon as they become aware. The AANA measurement period for US participants ran from June through August 2021 and for all other participants runs from March through May of 2022.

ISDA suggests using the following methods for notice:

For information on ISDA resources that can assist parties with the margin compliance process, see the following Legal Updates:

For further information on IM and other margin requirements, see Practical Law's Margin for Uncleared Swaps Toolkit.