ISDA and the Association for Financial Markets in Europe (AFME) have submitted a joint response to the European Central Bank (ECB) Guide on Climate and Environmental Risks. For the second year in a row, the ECB has identified climate-related and environmental risks as a key risk driver in the Single Supervisory Mechanism Risk Map for the euro area banking system. This four-month consultation on the ECB Guide to climate-related and environmental risks details how such risks should be managed by banks. As part of a supervisory dialogue in 2021 based on end-2020, significant institutions will be asked to inform the ECB of any divergences of their practices from the supervisory expectations described in the document. Where needed, significant institutions will be expected to promptly start adapting their practices. The industry sets out its general comments submitted as part of the consultation response.
Documents (1) for ISDA, AFME Respond to ECB Guide on Climate and Environmental Risks
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Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...
ISDA Response on Hedge Accounting Guidance
On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...
Joint Response to EBA Consultation
On August 12, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Banking Authority’s discussion paper on certain taxonomy key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of...
Response to JSCC on Clearing Fund Consolidation
On August 12, ISDA responded to the Japan Securities Clearing Corporation’s (JSCC) consultation on its proposal to consolidate clearing fund consumption, calculation and deposit segmentation across six clearing qualifications under the Financial Instruments and Exchange Act. ISDA members broadly support...