On November 17, ISDA and FIA submitted a joint response to the Bank of England’s (BoE) consultation on the power to restrict central counterparty (CCP) discretionary payments. In the response, the associations welcome the BoE’s proposed power to direct CCPs to temporarily restrict or prohibit discretionary payments to shareholders or employees of CCPs, defined under schedule 11, paragraph 13 of the Financial Services and Markets Act 2023.
The associations acknowledge that this new power is an important component within the BoE’s supervisory toolkit. This can serve to support a CCP’s financial resilience in times of stress, potentially helping to reduce the likelihood that a UK CCP would reach a point where it is failing or likely to fail, thereby safeguarding financial stability in the UK, as well as in third countries where clearing members are established.
Documents (1) for Response to BoE Consultation on CCP Discretionary Payments
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...