On July 17, ISDA and FIA submitted a joint response to the US Securities and Exchange Commission’s (SEC) proposed rulemaking regarding clearing agency resilience and recovery and wind-down plans.
The associations generally support the proposed changes aimed at enhancing the regulatory framework for recovery and wind-down plans and intraday margin processes of clearing agencies. They suggest that more prescriptive guidance is necessary for intraday margin and recovery and wind-down plans to provide clear expectations for clearing members and their clients. They emphasize the importance of predictability of margin calls and advocate for increased transparency of initial margin models. Additionally, they stress the need for credible recovery plans to ensure financial stability, and they call for clear rules on non-default losses and compensation for clearing participants.
The response also addresses the need for a second tranche of clearing agency own-funds capital and emphasizes the importance of including procedures for participants to move positions during orderly wind-down in the proposed rules.
Documents (1) for ISDA-FIA Response to Proposed SEC Rules on Clearing Agency Intraday Margin and Recovery/Wind-down Plans
Latest
Episode 56: Countdown to Treasury Clearing
With less than nine months to go until the first US Treasury clearing mandates come into force, BlackRock’s Tyler Wellensiek and BNY’s Nate Wuerffel discuss industry progress. Please view this page via Chrome to access the recording.
Response to Eurosystem Consultation on Appia
On April 22, ISDA responded to the Eurosystem consultation on the Appia roadmap. ISDA broadly supports the roadmap and its high level principles, while recommending that the principle on market access and integration should be expanded to explicitly address interoperability...
ISDA Responds to ESMA on PTRR Clearing Exemption
On April 20, ISDA submitted a response to the European Securities and Markets Authority (ESMA) consultation paper on a draft regulatory technical standard (RTS) for the post-trade risk reduction (PTRR) exemption from the derivatives clearing obligation under Article 4b of the...
Response on Competitiveness of EU Banking Sector
On April 17, ISDA responded to the European Commission’s (EC) targeted consultation on the competitiveness of the EU banking sector. The EU is aiming to bolster the ability of its financial markets and banking sector to grow, remain competitive and...