ISDA and AFME issue a Position Paper on the Fundamental Review of the Trading Book (FRTB) which serves as the basis for the market risk capital framework included in the Capital Requirement Directive (CRD) V legislative package proposed by the European Commission (EC) in November 2016. While the Industry is supportive of the introduction of the FRTB which aims at addressing structural shortcomings in Basel 2.5, it believes further calibration changes are required in certain areas and other methodological issues need to be appropriately addressed.
Documents (1) for ISDA/AFME Position Paper CRD V/CRR II: Fundamental Review of the Trading Book
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The CPI Quandary
The recent US government shutdown didn’t just create weeks of political drama – it also left inflation-linked swaps dealers with a major headache: how should they determine an initial value for new trades given the US Bureau of Labor Statistics...
ISDA Response to HMT, BoE on UK CCPs
On November 18, ISDA submitted its responses to the Bank of England (BoE) consultation on ensuring the resilience of central counterparties (CCPs) and the UK Treasury’s (HMT) two draft CCP statutory instruments (SIs). These consultations form part of the update...
Doubling Down on Appropriate Trading Book Capital
Throughout ISDA’s 40th anniversary year, we’ve been reflecting on the quest for greater consistency and efficiency that underpins everything we’ve achieved since 1985. It was at the heart of the original efforts to bring greater standardization to the nascent derivatives...
Determining Initial Reference Index for New Trades
On November 25, 2025, ISDA published a Market Practice Note (MPN) to recommend a specific methodology that market participants could elect to use for the purposes of determining the Initial Reference Index for certain new inflation derivative transactions given that...