On May 12, 2021, ISDA responded to question four of a joint consultation paper by European Supervisory Authorities on taxonomy-related sustainability disclosures. ISDA recommends the inclusion of derivatives in the proposed key performance indicators (KPIs) for disclosing the extent to which investments are aligned with the taxonomy, but only where they are used to attain the environmental or social characteristics promoted by the financial product or the sustainable investment objective of the financial product. Additionally, ISDA suggests this approach should be applied consistently across all relevant calculation KPIs in respect of Non-Financial Reporting Directive entity reporting under article 8 of the Taxonomy Regulation, as differing interpretations could create investor confusion, result in fragmented outcomes and minimize the potential for evolution of risk management practices in the environmental, social and governance space going forward.
Documents (1) for ISDA Responds to ESAs on Taxonomy-related Sustainability Disclosures
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Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...
Response to SEC on FICC Guaranty Fund
On September 1, ISDA and FIA submitted a joint response to the US Securities and Exchange Commission (SEC), supporting the Fixed Income Clearing Corporation’s (FICC) proposal to establish a dedicated guaranty fund at its government securities division (GSD). FICC had...
Korea – FSS published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions
On September 1, the Financial Supervisory Service (FSS) of Korea published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions. The guidelines extend the temporary exemption for equity options from the margin requirements until August 31, 2027. ISDA...