The announcement in October 2017 that the European Commission (EC) and US Commodity Futures Trading Commission (CFTC) had reached agreement on the mutual recognition of derivatives trading venues marked a big step forward in achieving cross-border harmonization between the European Union (EU) and US.
However, the agreement has spawned a number of important questions about the practical implications of how cross-border trading will work. This guide attempts to answer those questions. In particular, it analyzes the effect of mutual recognition on the order flow of trades executed on these venues, highlighting benefits and pointing to areas where further alignment would be welcome. The guide is also intended to help market participants navigate the numerous regulatory requirements related to trading on recognized venues by providing answers to commonly asked questions.
Documents (1) for A Practical Guide to Navigating Derivatives Trading on US/EU Recognized Trading Venues
Latest
Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...
ISDA Response on Hedge Accounting Guidance
On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...
Joint Response to EBA Consultation
On August 12, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Banking Authority’s discussion paper on certain taxonomy key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of...
Response to JSCC on Clearing Fund Consolidation
On August 12, ISDA responded to the Japan Securities Clearing Corporation’s (JSCC) consultation on its proposal to consolidate clearing fund consumption, calculation and deposit segmentation across six clearing qualifications under the Financial Instruments and Exchange Act. ISDA members broadly support...