On February 7, ISDA submitted its response to the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) discussion paper on client clearing: access and portability. In this discussion paper, CPMI and IOSCO cover two topics:
- New direct or sponsored access model for clients; and
- Porting in case of clearing member default.
ISDA welcomes the discussion paper. On direct or sponsored access models, ISDA members are generally supportive of tools that provide better access to clearing for clients or makes client clearing more cost-efficient, assuming any significant new risks these tools introduce into the clearing system can be managed by central counterparties (CCPs) and client clearing service providers (CCSP). ISDA, however, identifies some risks with these models that need to be carefully managed. ISDA concludes that despite such new models, the issue of capacity constraints in access to client clearing has not been solved yet.
On porting, ISDA members agree that two key strategies to support porting are for clients to have backup CCSPs and for CCPs to develop a porting game plan. However, neither strategy is without drawbacks and ultimately success hinges on the capacity of other CCSPs. ISDA proposes to review how regulation could be changed to provide more economic incentives for CCSPs to provide clearing services.
Documents (1) for ISDA Responds to CPMI-IOSCO on Client Clearing
Latest
SwapsInfo Full Year 2025 and Q4 2025
Trading activity in interest rate derivatives (IRD) and credit derivatives increased in 2025, reflecting shifting monetary policy expectations and broader market conditions. IRD traded notional rose by about 46% year-on-year, led by an increase in overnight index swaps (OIS). Index...
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum London, February 11, 2026 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to ISDA’s Annual Legal Forum. Thank you for joining us today and thanks to our platinum sponsors – Cleary...
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...
IRRBB Management in EMDEs
Interest rate risk in the banking book (IRRBB) has become a growing priority for banks and regulators in emerging market and developing economies (EMDEs). As many of these countries face monetary tightening cycles and ongoing macroeconomic volatility, bank balance sheets...
