FIA and ISDA Respond to ESMA’s Consultations on CCP Recovery & Resolution

On September 20, ISDA and FIA jointly responded to the European Securities and Markets Authority’s (ESMA’s)  seven consultations on recovery-related topics in the central counterparty (CCP) recovery and resolution regulation.

A topic of particular interest to members was the consultation on the second tranche of skin-in-the-game. For this consultation, ISDA and FIA suggested the calibration be reviewed to add more indicators on financial risk management, along with additional proposed indicators.

ESMA’s consultations papers can be found here:

 

Stress Scenarios for CCP IM Simulators

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Paper on EMIR 3 Active Account Representativeness

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Episode 51: Trading Places

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