ISDA sends agenda requests to FASB

ISDA has written a letter to the Financial Accounting Standards Board (FASB) requesting that the ability to designate a fair value or cash flow hedge of a foreign currency exposure that arises in connection with cross-border business acquisitions be considered as an agenda topic. This practice is pervasive across industries, narrow in nature, and can be resolved in a short-time frame. This practice is outside the scope of the recent hedging project that led to the issuance of Accounting Standards Update (ASU) 2017-12.

ISDA has also requested that derivative hedging the functional-currency-equivalent proceeds to be received from a forecasted foreign-currency-denominated debt issuance also be discussed. This topic was previously deliberated but left aside for a larger hedging project. This practice is pervasive across industries, narrow in nature, and can be resolved in a short-time frame. This practice is also outside the scope of the recent hedging project that led to the issuance of ASU 2017-12.

A Welcome Extension on US Treasury Clearing

Yesterday, the US Securities and Exchange Commission (SEC) announced it would delay the implementation of mandatory clearing for US Treasury securities by one year. That means eligible cash transactions will now need to be cleared by December 31, 2026, with...

ISDA and FIA Response on Pre-Hedging

On February 21, ISDA and FIA responded to the International Organization of Securities Commissions (IOSCO)’s consultation report on pre-hedging. In the response, the associations highlight that an appropriate, consistent and well-understood framework for pre-hedging is important for safe and efficient...