1. Public Policy
  2. Europe
  3. ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

Public Policy
Europe August 2, 2021
< 1  min.read

On July 29, 2021, ISDA published a paper on the pre-trade and systematic internalisers (SIs) regimes for over-the-counter (OTC) derivatives that looks at the role played by financial firms regulated as SIs in the OTC derivatives markets and whether the new regime introduced in 2018, including its price transparency elements, has delivered in practice for market participants and end users of derivatives.

Attractiveness of EU derivatives markets and availability of liquidity in euro derivatives largely depend on access by end users to all instruments, and having a well-functioning SI regime in OTC derivatives is fundamental for that attractiveness. This paper aims to highlight why liquidity providers acting as SIs in OTC derivatives markets are essential to EU clients seeking hedging tools and how this essential role requires a specific approach to the pre-trade transparency regime applicable to SIs.

Tags:

,

Documents (1) for ISDA Publishes Paper on Pre-trade Transparency and Systematic Internalisers Regime for OTC Derivatives

Latest

Transition to Mandatory Central Clearing

US Treasury securities sit at the heart of global financial markets and serve as one of the primary forms of high-quality collateral across derivatives and securities financing markets. The transition to mandatory central clearing of US Treasuries therefore has implications...

ISDA Publishes Updated ISDA SIMM Governance

ISDA has published an updated version of the ISDA SIMM® Governance Framework, which sets out the principles under which the ISDA Standard Initial Margin Model® operates and the process through which it will be reviewed and amended on a consistent...

ISDA Response to PRA IMA Consultation

On September 18, ISDA, the Association for Financial Markets in Europe, the Institute of International Finance and UK Finance submitted a joint response to the UK Prudential Regulation Authority consultation on adjustments to the internal model approach (IMA) for the...