In the report Central Counterparty Default Management Auctions – Issues for Consideration, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) described issues for further industry work to consider the design and conduct of default management auctions. These issues were structured into three categories of work where the Policy Standing Group of CPMI-IOSCO sought industry action.
After the publication of a joint paper developed by CCP12, the European Association of CCP Clearing Houses (EACH), FIA and ISDA on category 1 issues, which included several terminology and operational issues, the associations, together with the client associations FIA Principal Traders Group and the Managed Funds Association, developed three papers on category 2 issues:
- Joint association paper on client participation;
- CCP12/EACH paper on CCP governance and default management groups;
- FIA/ISDA paper on governance of CCP default management processes and the role of default management groups.
The associations continue to work on the third category, which includes potential nascent and emerging practices (synchronizing default management processes and identification of potential hedges between CCPs).
Latest
Why We Need Safe and Efficient SFT Markets
Securities financing transactions (SFTs) play a vital role in fostering liquidity, mobilizing collateral and supporting the smooth functioning of derivatives markets. But during periods of stress, secured funding markets often come under pressure just when they’re needed most, with reduced...
Response to BoE on Clearing Exemption for PTRR
On March 11, ISDA submitted a response to the Bank of England’s consultation on a proposed approach to exempting post-trade risk reduction (PTRR) transactions from the derivatives clearing obligation under Article 4 of the European Market Infrastructure Regulation (EMIR). ISDA...
IQ Interview with David Bailey
The Bank of England’s Prudential Regulation Authority recently finalized its Basel 3.1 framework for implementation at the start of 2027. David Bailey, executive director for prudential policy, talks to IQ about the importance of global consistency and the need to...
LSEG's TradeAgent Integrates ISDA DRR
ISDA has announced that LSEG has integrated ISDA’s Digital Regulatory Reporting (DRR) solution into its Post Trade Solutions business, TradeAgent, representing a significant milestone in the industry deployment of the ISDA DRR. The ISDA DRR converts an industry-agreed interpretation of...