On September 26, ISDA and the FIA responded to the CFTC’s notice of proposed rulemaking on derivatives clearing organizations’ (DCOs) recovery and orderly wind-down plans.
The associations acknowledge that CCP recovery, resolution and wind-down planning is paramount to preserving financial stability. They also welcome the CFTC proposal, which is well-balanced as it outlines a comprehensive analysis for DCOs, while preserving the flexibility required to adapt to changing circumstances.
The response advocates for:
- A requirement to limit clearing members’ CCP exposures during recovery and resolution;
- Non-default losses to be borne by CCPs;
- Clearing participants incurring losses due to use of recovery measures should be fairly compensated via future CCP profit sharing;
- Clearing participants to be adequately involved in the design phase of such recovery and wind-down plans;
- Within their plans, DCOs to meticulously assess any potential impact of all measures (such as the use of specific recovery tools) on clearing participants and other stakeholders.
The response to the CFTC consultation can be found here.
Documents (1) for ISDA, FIA Respond to CFTC Consultation on DCO Recovery and Orderly Wind-Down
Latest
SwapsInfo
ISDA SwapsInfo enhances transparency in the over-the-counter (OTC) derivatives markets by transforming publicly available data into user-friendly, interactive tools. It provides clear, accessible insights into trading volumes for interest rate derivatives (IRD) and credit derivatives. Users can easily chart, analyze,...
ISDA Response to EC on Environmental Legislation
On September 10, ISDA, the Association for Financial Markets in Europe (AFME) and the European Fund and Asset Management Association (EFAMA) submitted a joint response to the European Commission’s (EC) call for evidence on reducing the administrative burden in environmental...
Credit Derivatives Trading Activity Q2 2025
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...
ISDA Trading and Treasury Forum: CEO Remarks
ISDA Derivatives Trading and Treasury Forum London, September 16, 2025 Opening Remarks Scott O’Malia ISDA Chief Executive Officer Good morning, and welcome to the ISDA Derivatives Trading and Treasury Forum. Thank you to CME Group for partnering with us...