ISDA Responds to CFTC on CCP Governance

On October 11, ISDA responded to the Commodity Futures Trading Commission’s (CFTC) notice of proposed rulemaking (NPR). With the central role governance plays in a derivatives clearing obligation’s (DCO) risk management, we believe this NPR is very timely and will improve governance and risk management of DCOs. We, however, believe that this NPR is only the beginning and would welcome further improvements in DCO governance.

We are generally very supportive of this NPR. Risk Management Committees (RMCs), Risk Working Groups and wider consultation will promote transparency, accountability and predictability, and facilitate effective oversight by the Commission.

RMCs are good practice in many central counterparties (CCPs) and are already required by regulation in many other jurisdictions. We, therefore, welcome codification of such governance bodies as proposed by this NPR.

ISDA welcomes the consultation on additional topics, namely Market Participant Consultation Prior to a Rule Change and RMC Member Information Sharing with Firm to Obtain Expert Opinions. We believe both proposals would significantly improve DCO governance.

We note that the Securities Exchange Commission is also consulting on CCP governance and welcome that the two Commissions are liaising with each other.

Documents (1) for ISDA Responds to CFTC on CCP Governance

Joint Letter on Simplification of EU Taxonomy

On October 6, ISDA, the Association for Financial Markets in Europe (AFME), the European Fund and Asset Management Association (EFAMA), the European Association of Co-operative Banks (EACB) and the European Banking Federation (EBF) published a policy statement in support of...

Paper on Removal of SI Regime

On October 10, ISDA, the Association for Financial Markets in Europe (AFME) and the International Capital Market Association (ICMA) published a paper on the practical implications of the recent discontinuation of the systematic internalizer (SI) regime for derivatives, bonds and...

Episode 52: Innovative Thinking

The pace of change in derivatives markets shows no sign of letting up, with rapid evolution across trading, regulation and technology. Industry veteran Don Wilson, founder of trading firm DRW, talks to The Swap about some of the biggest trends....