ISDA appreciates the opportunity to provide comments to the US Commodity Futures Trading Commission (CFTC) regarding the Cross-Border Application of the Registration Thresholds and Certain Requirements Applicable to Swap Dealers and Major Swap Participants published in the Federal Register on January 8, 2020.
We commend the Commission’s efforts to recalibrate its cross-border regime through the rulemaking process to better reflect its authority over cross-border transactions and reverse certain negative consequences that resulted from the application of the 2013 Cross-Border Guidance. Revisiting the cross-border regime is especially timely given that other nations have made significant progress in implementing the 2009 G-20 derivatives reforms.
We support the Commission’s proposed holistic, outcomes-based approach to issuing comparability determinations. We agree that the CFTC should assess the laws of foreign jurisdictions based on a common set of principles with an understanding that jurisdictions may have implemented the G-20 derivatives reforms from slightly different perspectives, and look to adopt a substituted compliance regime based on comparable, rather than identical, approaches to derivatives regulations.
Changes to the current cross-border regulatory framework are not only timely, but are also necessary. In some instances, the current framework has created regulatory barriers to access global liquidity, increased capital requirements and costs, added operational complexity and risk, and imposed burdensome duplicative compliance obligations, which ultimately diminish their intended regulatory benefit.
To further refine the cross-border regime, we have identified four aspects of the Proposal that warrant the Commission’s additional consideration, which are explained in more detail later in the letter.
Click on the attached PDF to read the full comment letter.
Documents (1) for ISDA Comment Letter to CFTC on Cross-Border Application of the Registration Thresholds and Certain Requirements Applicable to Swap Dealers and Major Swap Participants
Latest
Joint Response to 2026 US G-SIB Surcharge Proposal
On June 18, ISDA, the Securities Industry and Financial Markets Association and the Institute of International Finance submitted a joint response to US agencies on proposed changes to the surcharge for global systemically important banks (G-SIBs). The associations welcome the...
Eyeing the Basel III Finish Line
An effective regulatory capital framework relies on multiple ingredients, from appropriate drafting to rigorous testing and consultation. Even minor calibration distortions can inflate capital requirements, which could negatively affect the capacity of banks to support deep and liquid markets, with...
Joint Comment Letter on Basel III Endgame Proposal
The Institute of International Finance (IIF), the International Swaps and Derivatives Association, Inc. (ISDA) and the Securities Industry and Financial Markets Association (SIFMA) today submitted a joint comment letter to the Board of Governors of the Federal Reserve System, the...
Joint Response to 2026 US Basel III Proposal
On June 18, ISDA, the Institute of International Finance and the Securities Industry and Financial Markets Association submitted a joint response to the 2026 US Basel III notice of proposed rulemaking (NPR). The response focuses on the Fundamental Review of...
