Whether CCP equity should and can be used as a loss bearing resource in resolution is subject of extensive discussions, including the FSB consultative document Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution. ISDA has asked Allen & Overy to produce a memorandum to consider the type and nature of loss to which the equity of EEA central counterparties might be exposed on a CCP resolution based upon the proposed CCP recovery and resolution regulation under the Council compromise text and in particular, whether CCP equity would naturally be expected to be written down whenever a resolution occurs.
Documents (1) for A&O Memorandum on CCP Equity and No-Creditor-Worse-Off
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...