1. Public Policy
  2. Europe
  3. ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

Public Policy
Europe August 2, 2021
< 1  min.read

On July 29, 2021, ISDA published a paper on the pre-trade and systematic internalisers (SIs) regimes for over-the-counter (OTC) derivatives that looks at the role played by financial firms regulated as SIs in the OTC derivatives markets and whether the new regime introduced in 2018, including its price transparency elements, has delivered in practice for market participants and end users of derivatives.

Attractiveness of EU derivatives markets and availability of liquidity in euro derivatives largely depend on access by end users to all instruments, and having a well-functioning SI regime in OTC derivatives is fundamental for that attractiveness. This paper aims to highlight why liquidity providers acting as SIs in OTC derivatives markets are essential to EU clients seeking hedging tools and how this essential role requires a specific approach to the pre-trade transparency regime applicable to SIs.

Tags:

,

Documents (1) for ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

Latest

A Positive Step to Improve the FRTB in the EU

As the Basel III capital reforms are finalized for implementation in key jurisdictions, ISDA is maintaining a laser focus on making sure the rules are robust and risk-appropriate. Simply put, if capital requirements are set disproportionately high, this will have...