This paper examines some factors that central counterparties (CCPs) should consider in structuring partial tear-up methodologies so as not to contravene rules on offsetting under the applicable accounting standards, which would render cleared derivatives uneconomical. The paper notes that CCPs can structure partial tear-up in a number of ways. Whatever the structure, the CCP’s methodology for partial tear-up should be transparent, written in its rule book, available to all potentially affected parties and should respect US GAAP and IFRS accounting standards.
Documents (1) for Consideration of Accounting Analysis for CCP Recovery and Continuity Tools
Latest
Equity Definitions VE InfoHub
This page will be updated on a regular basis as relevant information becomes available and will serve as a repository for information from ISDA relating to the initiative to update the 2002 ISDA Equity Derivatives Definitions (the “2002 Equity Definitions”)....
ISDA responds to FSB on leverage in NBFI
On February 28, ISDA responded to the Financial Stability Board’s (FSB) consultation on leverage in the non-bank financial intermediation (NBFI) sector. In the response, ISDA makes the following points: Due to the diverse nature of the NBFI sector (in terms...
ISDA responds to BoE rules for FMIs
On February 19, ISDA submitted a response to a consultation from the Bank of England (BoE) on a proposal to introduce a set of rules for UK financial market infrastructures (FMIs), including central counterparties (CCPs). In the response, ISDA expresses...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.