Joint Trade Associations Ask for EMIR Equity Option Margin Exemption

ISDA, the Alternative Investment Management Association, the European Association of Co-operative Banks, the European Banking Federation, the European Fund and Asset Management Association, Invest Europe, the Managed Funds Association, and the Nordic Securities Association have asked for a permanent exemption from margin requirements for equity options from the European Market Infrastructure Regulation (EMIR) margin requirements.

Equity options play a significant part in the real economy. Imposing variation and initial margin requirements on these instruments would increase funding costs and operational complexity and could result in smaller EU counterparties ceasing to use equity options for hedging and risk mitigation purposes.

In addition, given some major jurisdictions are permanently exempting equity options from margin requirements, EU market participants would face a clear competitive disadvantage when dealing with non-EU counterparties.

Documents (1) for Joint Trade Associations Ask for EMIR Equity Option Margin Exemption

Joint Paper on UK EMIR Reform

On July 1, ISDA and UK Finance published a paper, which recommended a set of reforms for the UK European Market Infrastructure Regulation (UK EMIR), carefully considering each EU EMIR 3.0 reform and asking whether we would wish to adopt...

Response to FCA on UK EMIR Reporting

On June 30, ISDA submitted a response to chapter 5 of the UK Financial Conduct Authority’s (FCA) quarterly consultation CP25/16 on trade repository reporting requirements under the UK European Market Infrastructure Regulation (UK EMIR). Chapter 5 proposes ‘Amendments to the...

CDS Trading Activity in EU, UK and US Markets

This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to...