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.
Documents (1) for ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives
Latest
SwapsInfo Full Year 2024 and Q4 2024
Interest rate derivatives (IRD) trading activity increased in 2024, driven by interest rate volatility, adjustments in central bank policies and shifting market expectations on inflation and economic growth. Index credit derivatives also saw increased activity, as measured by traded notional,...
ISDA Response on UK MIFID Transaction Reporting
On February 14, ISDA submitted a response to the UK Financial Conduct Authority’s (FCA) discussion paper 24/2 on improving the UK transaction reporting regime under the UK Markets in Financial Instruments Directive (MIFID) framework. The FCA indicated it is making...
Saudi Capital Markets Event Welcome Remarks
Capital Markets & the Kingdom of Saudi Arabia February 19, 2025 Opening Remarks Scott O’Malia ISDA Chief Executive Good morning, everyone. I’d like to add my thanks to Saudi Tadawul Group for working with us on this event, as...
Appropriate Capital Regs Needed for Liquid Markets
The Basel III capital framework was designed to strengthen the regulation, supervision and risk management of banks in response to weaknesses exposed by the global financial crisis. As the last components of the framework are finalized and implemented around the...