On October 1, 2021, ISDA submitted a response to the European Securities and Markets Authority’s (ESMA) consultation on the review of transparency requirement under the Markets in Financial Instruments Regulation (MIFIR). In the response, ISDA highlights the following aspects:
- The application of concepts from equity markets should be avoided with respect to the regulation of derivatives.
- There is a need to further differentiate bonds and derivatives and also exchange-traded derivatives and over-the-counter derivatives.
- The use of ISINs is inappropriate for the purpose of transparency in derivatives markets, undermining reference data and transparency information.
- It is premature to reform the current waiver regime (the size-specific-to-the-instrument and large-in-scale waivers) in light of the need to prevent liquidity makers and end users from undue risk.
Based on the feedback received from stakeholders, ESMA will publish a final report and submit draft technical standards to the European Commission in the first quarter of 2022.
Documents (1) for ISDA Responds to ESMA on Review of MIFIR Transparency Requirements
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...
Calibration Test – IQ September 2026
Calibrating capital requirements is a highly complex undertaking and getting it wrong can have serious consequences. Too much lenience might lead to banks holding insufficient capital to mitigate their risks. But excess conservatism can put balance sheets under strain, forcing...