On June 15, ISDA and the European Banking Federation (EBF) submitted a response to ESMA’s consultation on post-trade risk reduction (PTTR). ISDA and the EBF stress that firms still have sizable bilateral portfolios and propose that transactions that are a result of PTRR should be allowed to remain uncleared, for derivatives transaction which would otherwise be subject to the clearing obligation (CO) under EMIR. In order to address concerns in relation to the potential risks of firms circumventing the CO, ISDA and the EBF propose strict conditions for administrative transactions resulting from PTRR. Therefore, PTRR should be performed by independent providers, there should be a requirement to prove that risk reduction exercises reduce the risk in each bilateral portfolio, and that each bilateral transaction resulting from PTRR exercises must be subject to an equal and opposite transaction facing a central counterparty.
Documents (1) for ISDA and EBF Respond to ESMA Consultation on PTRR Services with Regards to Clearing Obligation
Latest
Market Transformation – IQ May 2026
On the 250th anniversary of American independence, this year’s ISDA Annual General Meeting (AGM) was held in Boston, a city that played a prominent role in the American Revolution. In his opening remarks, ISDA chief executive Scott O’Malia drew a...
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.
Letter to EC and ESMA on Derivatives Framework
On May 27, ISDA sent a letter to the European Commission (EC) and the European Securities and Markets Authority (ESMA) to highlight several technical issues arising from the interaction between the delegated regulation (EU) 2025/1003 on identifying reference data to...
Response on Proposed Changes to Transaction Rules
On May 22, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association submitted a joint response to the Australian Securities and Investments Commission's (ASIC) consultation on proposed changes to the ASIC Derivative Transaction Rules (Reporting)...