The expanded and increasingly novel use of targeted economic sanctions programs in recent years has potential ramifications for the derivatives market and there has been limited and inconsistent guidance on how, if at all, sanctions programs are intended to impact derivatives. This paper examines unique aspects of derivatives transactions that can present issues in interpreting how sanctions programs should apply in the context of derivatives and analyses these issues in the context of recent sanctions program experiences. This paper also proposes eight principles for sanctions authorities to be cognizant of when introducing new sanctions programs or extending existing sanctions programs to ensure the continued safe operation of derivatives markets and minimize market disruption and economic consequences for non-sanctioned entities, without compromising foreign policy or national security goals, conferring any benefit on sanctioned entities or otherwise harming the objectives of any sanctions program.
Click on the attached PDF to read the full paper.
Documents (1) for Economic Sanctions Programs & Derivatives
Latest
Response on Dividend Stripping
On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy...
ISDA Launches DRR Tracer Agent
ISDA has launched an artificial intelligence (AI) agent for its Digital Regulatory Reporting (DRR) solution that will bring greater transparency to users by tracing the rules and decisions that have guided the development of the DRR. The ISDA DRR Tracer...
US FX Derivatives Review
ISDA has expanded its SwapsInfo website to include data on US foreign exchange (FX) derivatives, extending the platform's coverage beyond interest rate and credit derivatives to a third over-the-counter derivatives asset class. The US FX Derivatives Review covers trading activity...
Response to FCA on Post-trade Transparency
On October 16, ISDA responded to the Financial Conduct Authority’s (FCA) consultation CP26/30. While the consultation is principally focused on cash equity market structure and transparency, ISDA responded to questions on the potential inclusion of equity swaps in the scope...