FIA and ISDA Respond to ESMA’s Consultations on CCP Recovery & Resolution

On September 20, ISDA and FIA jointly responded to the European Securities and Markets Authority’s (ESMA’s)  seven consultations on recovery-related topics in the central counterparty (CCP) recovery and resolution regulation.

A topic of particular interest to members was the consultation on the second tranche of skin-in-the-game. For this consultation, ISDA and FIA suggested the calibration be reviewed to add more indicators on financial risk management, along with additional proposed indicators.

ESMA’s consultations papers can be found here:

 

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...