Clearing has become a critical part of the derivatives landscape, with more than three quarters of interest rate derivatives notional outstanding now cleared through central counterparties (CCPs). Market participants have embraced the operational and cost efficiencies that clearing offers, and are now clearing more than what is required by regulatory mandates.
Despite this shift to clearing, work is still required to implement a robust framework for CCP resilience, recovery and resolution. Given the systemic importance of CCPs, ISDA urges regulators and policy-makers to continue working together to finalize unambiguous and predictable CCP recovery and resolution strategies. More politically driven topics – for instance, the debate over CCP location in the European Union and the change of administration in the US – should not distract from this important work.
This paper makes a number of recommendations for a comprehensive CCP recovery and resolution framework that would ensure CCPs can withstand severe market stress. In doing so, ISDA recognizes that these strategies will necessarily have to vary by jurisdiction and by CCP, based on different CCP structures and existing legal regimes.
Click on the attached PDF to read the full paper.
Documents (1) for Safeguarding Clearing: The Need for a Comprehensive CCP Recovery and Resolution Framework
Latest
FRTB Impact on Correlation Trading
The capitalization of the correlation trading portfolio (CTP) under the Fundamental Review of the Trading Book will have an adverse economic impact for users of these instruments. In particular, there is a lack of clarity and consistency in the application...
ISDA In Review – September 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in September 2025.
A Path to Greater CFTC-SEC Alignment
Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.