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
Guidance for EU IM Model Application for ISDA SIMM®
EU financial and non-financial EU counterparties exchanging IM based on ISDA SIMM® should have already submitted an initial application for authorisation to their competent authority (CA), and ECB if applicable. If not, they should do so timely to ensure continued...
Joint Response on Stress Testing Framework
On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress...
Joint Letter on Italian 2026 Budget Law
On February 23, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which...
Response to FCA on UK MIFIR Consultation
On February 20, ISDA responded to the Financial Conduct Authority’s (FCA) consultation on improving the UK Markets in Financial Instruments Regulation (MIFIR) transaction reporting regime. The consultation aims to reduce the regulatory burden on firms, support sustained economic growth in...