On March 3, ISDA, the Alternative Investment Management Association and the Investment Association sent a follow-up letter to the Bank of England and the Prudential Regulation Authority about making permanent the UK European Market Infrastructure Regulation temporary exemption for certain equity options from exchanging initial margin and variation margin.
In the letter, the associations highlight that single stock equity options and index equity options play a significant part in the real economy and are used for multiple purposes aside from transactions between dealers, including hedging exposure to the purchase price in the context of a merger and acquisition transaction or share buy-back by companies. The associations’ members believe the rationale for the original temporary exemption remains valid and that alignment with the US is important to avoid disruption to cross-border business.
The associations request that UK authorities communicate their intentions as soon as possible to avoid the damaging effects of a cliff edge on January 4, 2024.
Documents (1) for Letter to PRA and BOE on UK EMIR Equity Option Exemption
Latest
US Treasury Repo Clearing Indicators May 2026
The ISDA-Actrix US Treasury Repo Market Clearing Indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, the key objective of the Securities...
ISDA, FIA, GFMA, CMC, CMCE Respond to IOSCO on Best Practices for OTC Commodity Derivatives
ISDA, FIA, the Global Financial Markets Association (GFMA), the Commodity Markets Council (CMC) and the Commodity Markets Council Europe (CMCE), have responded to the International Organization of Securities Commissions' (IOSCO) consultation report on best practices for over-the-counter (OTC) commodity derivatives...
Joint Response to 2026 US G-SIB Surcharge Proposal
On June 18, ISDA, the Securities Industry and Financial Markets Association and the Institute of International Finance submitted a joint response to US agencies on proposed changes to the surcharge for global systemically important banks (G-SIBs). The associations welcome the...
Eyeing the Basel III Finish Line
An effective regulatory capital framework relies on multiple ingredients, from appropriate drafting to rigorous testing and consultation. Even minor calibration distortions can inflate capital requirements, which could negatively affect the capacity of banks to support deep and liquid markets, with...