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
Response to BoE on Systemic Stablecoins
On February 10, ISDA responded to the Bank of England’s (BoE) consultation on a proposed regulatory regime for sterling-denominated systemic stablecoins. In the response, ISDA highlights that any regulatory framework should be assessed through the lens of prudent risk management...
SwapsInfo Full Year 2025 and Q4 2025
Trading activity in interest rate derivatives (IRD) and credit derivatives increased in 2025, reflecting shifting monetary policy expectations and broader market conditions. IRD traded notional rose by about 46% year-on-year, led by an increase in overnight index swaps (OIS). Index...
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum London, February 11, 2026 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to ISDA’s Annual Legal Forum. Thank you for joining us today and thanks to our platinum sponsors – Cleary...
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...