In the report Central Counterparty Default Management Auctions – Issues for Consideration, the Committee on Payments and Market Infrastructures (CPMI) and the board of the International Organization of Securities Commissions (IOSCO) described issues for further industry work to consider the design and conduct of default management auctions. These issues were structured into three categories of work where the policy standing group of CPMI-IOSCO sought industry action.
- The first category includes several terminology and operational issues where there is broad industry consensus to support further development.
- The second category includes areas (governance of a central counterparty’s (CCP) default management process, use of traders in default management groups and the scope of client participation) where there may be differing views among clearing members, clients, CCPs and other stakeholders.
- The third category includes potential nascent and emerging practices (synchronizing default management processes and identification of potential hedges between CCPs) that may require further coordination and harmonization among the default management processes of multiple CCPs.
This paper – developed by CCP12, the European Association of CCP Clearing Houses (EACH), the Futures Industry Association (FIA) and ISDA – addresses the first category. The associations continue to work on the other two categories and remain in constant contact with authorities, with the aim of finding common ground where possible and to meet the authorities’ expectations.
Documents (1) for CCP12, EACH, FIA and ISDA Publish Paper on Common Auction Terminology
Latest
FRTB Impact on Correlation Trading
The capitalization of the correlation trading portfolio (CTP) under the Fundamental Review of the Trading Book will have an adverse economic impact for users of these instruments. In particular, there is a lack of clarity and consistency in the application...
ISDA In Review – September 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in September 2025.
A Path to Greater CFTC-SEC Alignment
Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.