ISDA Letter on EMIR Review

On October 3, 2022, ISDA wrote to the European Commission, the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority to urge them to take the opportunity while working on the revision of the European Market Infrastructure Regulation (EMIR) to remove unnecessary barriers to clearing in Europe and avoid market fragmentation. In the letter, ISDA asks for the removal of equivalence as a pre-condition to the availability of the intragroup transaction exemption from margining, clearing and credit value adjustment under the EU Capital Requirements Regulation. ISDA recommends that EMIR article 13 equivalence is revisited – in particular, the requirement that one of the relevant group entities be ‘established’ in the third-country jurisdiction concerned, so EU firms can avoid duplicative and conflicting margin, clearing and reporting requirements under EU and third-country rules. ISDA has also proposed a revision of the initial margin eligibility rules so third-country money markets funds meeting strict criteria are eligible collateral.

Documents (1) for ISDA Letter on EMIR Review

A Path to Greater CFTC-SEC Alignment

Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...

Working Towards Tokenized Collateral

One of the lessons learned from recent market shocks – including the 2020 dash for cash and the UK gilt market crisis in 2022 – is that when volatility strikes and market participants must suddenly generate large amounts of cash...