--- title: ICE Updates Futures and Options Initial Margin Methodology description: IRM 2.0 allows for offsets to be reflected in the final initial margin value. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/buy-side-forced-review-collateral-arrangements-950-May-12-2022-09-20-20-79-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/ice-updates-futures-and-options-initial-margin-methodology#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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IRM 2.0 utilizes a Filtered Historical Simulation VaR approach that models the behavior of a portfolio, capturing all relationships and diversifying effects within a portfolio, rather than measuring risk on an instrument-by-instrument basis. “Over the last decade, ICE has invested heavily in its clearing operations technology and its world class risk management and models,” said Christopher S. Edmonds, Global Head of Clearing and Risk at ICE. “By modelling the portfolio as a whole, IRM 2.0 allows for offsets to be reflected in the final initial margin value, creating risk-appropriate capital efficiencies for clearing members and their customers. We are working closely with clearing members, regulators and the wider market as we develop and transition to the new risk model.” The initial launch is planned for January 24, 2022, for ICE equity index futures contracts cleared at ICE Clear U.S., which includes the ICE MSCI and MICRO NYSE FANG+™ Index futures. It is our plan to seek approval for IRM 2.0 in other product groups and other ICE Clearing Houses in phases, subject to all appropriate regulatory approvals. ICE’s CDS services, operated by both ICE Clear Credit and ICE Clear Europe, will continue to utilize the existing CDS margin methodology and there are no plans to change the CDS margin methodology. ICE Clear U.S. has created a dedicated [ICE Risk Model 2.0 page](https://www.theice.com/clear-us/ice-risk-model) on its website, which also includes a comprehensive [FAQ](https://www.theice.com/clear-us/ice-risk-model/faq). Source: ICE [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/ice-updates-futures-and-options-initial-margin-methodology) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/ice-updates-futures-and-options-initial-margin-methodology) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/ice-updates-futures-and-options-initial-margin-methodology) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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