On June 1, ISDA and the Association for Financial Markets in Europe submitted a response to a European Commission (EC) consultation on the Delegated Act on Article 8 taxonomy disclosures. The associations recommend that assets held in the trading portfolio should be excluded from the green asset ratio’s (GAR’s) computation and associated disclosure obligation and that only banking book exposures should form its basis. Moreover, the associations note that although derivatives should be included in the relevant key performance indicators measuring alignment with sustainability purposes, this should happen gradually following a more in-depth assessment of their current uses by EU policy-makers and regulators. Finally, the associations point out that the inconsistent treatment of derivatives in the GAR is not optimal from a methodological consistency standpoint, as it could structurally disfavour banks. The paper calls on the EC to reassess its approach for derivatives holistically in the GAR until this matter has been appropriately examined in more detail.
Documents (1) for ISDA Responds to EC Consultation on Taxonomy Disclosures
Latest
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...
Response on CSDD Guidelines
On August 6, ISDA responded to the European Commission’s (EC) consultation on due diligence guidelines under the Corporate Sustainability Due Diligence Directive (CSDDD). While ISDA acknowledges that model contractual clauses can be a helpful resource for in-scope companies, there are...
Response to BoE on Extension of Settlement Hours
On August 6, ISDA responded to the Bank of England’s (BoE) consultation paper on the extension of settlement hours for RTGS and CHAPS, the UK’s high-value payment system. ISDA supports the BoE’s plan to extend RTGS and CHAPS settlement hours...