This short paper examines the extent of counterparty credit losses and the efficacy of credit mitigation techniques in the U.S. banking system with respect to OTC derivatives. ISDA drew upon data from the Office of the Controller of the Currency Quarterly Report on Bank Trading and Derivatives Activities First Quarter 2011 (the OCC Report) and SEC reports filed by the parents of two non-bank entities active in structuring CDOs of sub-prime mortgages where significant losses are known to have occurred due to monoline insurance company exposure.
Documents (1) for Counterparty Credit Risk Management in the US Over-the-Counter (OTC) Derivatives Markets
Latest
Joint Response to FCA and HMT Consultations
On January 16, ISDA and UK Finance responded to both the consultation on streamlining the UK European Market Infrastructure Regulation (UK EMIR) intragroup regime by the Financial Conduct Authority’s (FCA) and the draft statutory instrument from His Majesty’s Treasury (HMT)....
Key Trends in OTC Derivatives Market H1 2025
The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows an increase in notional outstanding of OTC derivatives during the first half of 2025 compared to the first half of 2024. Notional outstanding rose across...
Credit Derivatives Trading Activity Q3 2025
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...
Striking a Balance on EU Market Risk Capital
With US prudential regulators poised to publish a revised Basel III endgame proposal this year, and EU and UK regulators moving to finalize their own rules, ISDA is maintaining a laser focus on achieving a risk-appropriate capital framework that is...