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
ISDA Launches Pre-adherence Period for Notices Hub
ISDA has begun a pre-adherence process for the ISDA Notices Hub, enabling firms to sign up to a free protocol that will allow them to use the new platform when it launches on July 15. Under the ISDA Master Agreement,...
ISDA SIMM EU Regulatory Approval Requirements
ISDA published ISDA SIMM version 2.7+2412 on May 22 – the first recalibration under the new semiannual cycle. The release triggered a new requirement for EU counterparties to apply for regulatory authorization to use the model – a submission that...
Creating Value - IQ June 2025
Ever since its establishment 40 years ago, ISDA has worked to enhance the safety and efficiency of derivatives markets. That has motivated everything we do – from the development of standard documentation and the rollout of new digital solutions to...
Paper on EC’s Sustainability Omnibus Proposal
On June 9, ISDA published a position paper setting out its views on the European Commission’s (EC) Sustainability Omnibus Package. In the paper, ISDA urges European authorities to: Ensure a proportionate, harmonized and symmetrical approach to the use of derivatives...