The industry’s progress in reducing counterparty credit risk.
ISDA and the industry are committed to expanding clearing and portfolio compression efforts as part of the overall goal to reduce counterparty risk. Our progress is reflected by the increasing range and volume of transactions that are cleared and compressed.
The size of the CDS market has been reduced by more than 75 percent through a combination of clearing and compression; more than $15 trillion has been centrally cleared while portfolio compression has eliminated more than $70 trillion.
Over 40 percent of the interest rate swaps market is now centrally cleared. Another $106 trillion of interest rate swaps has been eliminated due to portfolio compression.
Below is a list of analyses of existing clearing services, comment letters to regulators and industry commitments related to ISDA and the industry’s work in OTC derivatives clearing and portfolio compression. Additional information on clearing and portfolio compression is available from TriOptima triReduce, Markit and ICE Clearing.
To learn more about ISDA’s work in the industry’s clearing commitments to regulators, visit the G20 Commitments page.
Latest
ISDA Letter to FASB on Agenda Consultation
On June 30, ISDA submitted a comment letter to the Financial Accounting Standards Board (FASB) in response to the proposal File Reference No. 2025-ITC100, Agenda Consultation. In the letter, ISDA believes the highest priority should be given to expanding the hedge...
Joint Paper on UK EMIR Reform
On July 1, ISDA and UK Finance published a paper, which recommended a set of reforms for the UK European Market Infrastructure Regulation (UK EMIR), carefully considering each EU EMIR 3.0 reform and asking whether we would wish to adopt...
Response to FCA on UK EMIR Reporting
On June 30, ISDA submitted a response to chapter 5 of the UK Financial Conduct Authority’s (FCA) quarterly consultation CP25/16 on trade repository reporting requirements under the UK European Market Infrastructure Regulation (UK EMIR). Chapter 5 proposes ‘Amendments to the...
CDS Trading Activity in EU, UK and US Markets
This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to...