Clearing has become a critical part of the derivatives landscape, with more than three quarters of interest rate derivatives notional outstanding now cleared through central counterparties (CCPs). Market participants have embraced the operational and cost efficiencies that clearing offers, and are now clearing more than what is required by regulatory mandates.
Despite this shift to clearing, work is still required to implement a robust framework for CCP resilience, recovery and resolution. Given the systemic importance of CCPs, ISDA urges regulators and policy-makers to continue working together to finalize unambiguous and predictable CCP recovery and resolution strategies. More politically driven topics – for instance, the debate over CCP location in the European Union and the change of administration in the US – should not distract from this important work.
This paper makes a number of recommendations for a comprehensive CCP recovery and resolution framework that would ensure CCPs can withstand severe market stress. In doing so, ISDA recognizes that these strategies will necessarily have to vary by jurisdiction and by CCP, based on different CCP structures and existing legal regimes.
Click on the attached PDF to read the full paper.
Documents (1) for Safeguarding Clearing: The Need for a Comprehensive CCP Recovery and Resolution Framework
Latest
ISDA Letter to CFTC on Public Interest Determinations for Event Contracts
On July 27, ISDA submitted a letter to the U.S. Commodity Futures Trading Commission (CFTC) on the CFTC’s proposed rulemaking on public interest determinations for event contracts published in the Federal Register on June 12, 2026. ISDA emphasized the importance...
ISDA Letter to BCBS on RMA Models
On July 24, ISDA wrote to the Basel Committee on Banking Supervision (BCBS) to request guidance on how the proposed Risk Mitigation Accounting (RMA) model under International Financial Reporting Standard (IFRS) 9/IFRS 7 should be treated for prudential regulatory capital...
US Treasury Repo Clearing Indicators June 2026
The ISDA-Actrix US Treasury Repo Market Clearing Indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, a key objective of the Securities...
Australia: ISDA responds to ASIC consultation on pre-hedging guidance
On July 27, ISDA submitted a response to the Australian Securities and Investments Commission's (ASIC) consultation on its proposed regulatory guide on pre-hedging. ISDA's response emphasises the importance of international consistency, including alignment with the International Organization of Securities Commissions'...