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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ISDA Recommendations to Simplify EU Regulation
On March 9, ISDA submitted a paper to the European Commission setting out focused proposals to improve the functioning of the EU regulatory framework for derivatives. The paper comprises eight targeted recommendations to simplify selected Level 1 provisions in a...
New Selection Process for Standard Reference Obligations (SROs) FAQs
This Frequently Asked Questions (“FAQ”) document gives information about the new selection process for Standard Reference Obligations (SROs). Note that ISDA may update these FAQs on occasion. Please check back periodically for new versions.
Refreshing the FX Definitions
A lot has changed in the FX derivatives market since 1998, when the last set of standard definitions for FX transactions were published. Trading volumes have grown substantially, and average daily turnover has risen by six times. Market practices have...
ISDA & EMTA Publish New FX Definitions
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