FIA and ISDA Respond to ESMA’s Draft Guidelines of Supervisory Review of CCPs

FIA and ISDA have responded to ESMA’s consultation on their “Draft Guidelines on common procedures and methodologies on supervisory review and evaluation process of CCPs under Article 21 of EMIR”. The associations support standardisation of scope and depth of these reviews. Clearing participants rely on the CCP reviews by national competent authorities and believe that standardisation and improvement of these reviews is important in view of recent defaults at European CCPs, which at least initially required the use of the default fund. The associations recommend that these reviews are not restricted to the elements set out in the consultation, but should holistically review whether the risk management framework is fit for purpose.

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Documents (1) for FIA and ISDA Respond to ESMA’s Draft Guidelines of Supervisory Review of CCPs

Remove Bureaucracy from Cross-margin Approvals

Cross-margining programs play a critical role in financial markets. By ensuring margin requirements more closely reflect the actual risk of a portfolio of products, they reduce liquidity strain and improve market efficiency, both of which will become even more important...

Joint Response on CCP Resolution

On September 7, ISDA and FIA responded to a Bank of England (BOE) discussion paper on central counterparty (CCP) resolution. The associations support greater clarity on valuation capabilities prior to a crisis scenario and the boundary between recovery and resolution,...