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
Episode 59: Reducing Burdens
As she nears the end of her term as chair of the European Securities and Markets Authority, Verena Ross joins The Swap to discuss progress in simplifying and reducing the burden of EU financial regulation, including transaction reporting. Please view...
CDS Market Dynamics: Record 2025
Global credit default swap (CDS) market activity reached a record $41.8 trillion in 2025, surpassing the previous peak of $38.7 trillion in 2022. Index CDS drove the increase, accounting for 93.3% of total activity and reaching a record $39.0 trillion....
ISDA Letter to CFTC on Public Interest Determinations for Event Contracts
On July 27, ISDA submitted a letter to the U.S. Commodity Futures Trading Commission (CFTC) on the CFTC’s proposed rulemaking on public interest determinations for event contracts published in the Federal Register on June 12, 2026. ISDA emphasized the importance...
ISDA Letter to BCBS on RMA Models
On July 24, ISDA wrote to the Basel Committee on Banking Supervision (BCBS) to request guidance on how the proposed Risk Mitigation Accounting (RMA) model under International Financial Reporting Standard (IFRS) 9/IFRS 7 should be treated for prudential regulatory capital...