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
Key Trends in OTC Derivatives Market H2 2025
The latest data from the Bank for International Settlements over-the-counter (OTC) derivatives statistics shows an increase in notional outstanding of OTC derivatives during the second half of 2025 compared to the same period in 2024. Notional outstanding rose across all...
ISDA-SIFMA letter to SEC on Swap Dealer Thresholds
ISDA and SIFMA have submitted a comment letter to the SEC in response to the staff report on the definitions of “security-based swap dealer” and “major security-based swap participant.” The associations recommend maintaining the current de minimis thresholds for both...
ISDA responds to RBI consultation on SA-CCR
On July 1, ISDA responded to the Reserve Bank of India's (RBI) consultation on draft amendment directions on the standardized approach for counterparty credit risk (SA-CCR). ISDA broadly welcomes the RBI's move to SA-CCR and updated capital treatment for exposures...
Data Subject Access Request Form
Pursuant to its mission to promote safe and efficient markets within the over-the-counter (OTC) derivatives industry, The International Swaps and Derivatives Association, Inc. (ISDA) processes personal data of its employees, members and non-members (for example individuals attending ISDA conferences or...