ISDA Responds to FCA on Commodity Derivatives

On February 15, ISDA and the Association for Financial Markets in Europe (AFME) submitted a joint response to the UK Financial Conduct Authority’s (FCA) consultation on the reform of the UK commodity derivatives regulatory framework. The consultation sought to remove unnecessary burdens on firms and strengthen the supervision of UK commodity derivatives markets.

In the response, the associations strongly support the FCA’s proposal to apply a narrower position limits regime that is more proportionate to the risks associated with certain commodity derivatives contracts. However, the associations express concern over the proposed approaches for setting position limits and adding additional reporting obligations. They note the complex and burdensome frameworks proposed can discourage participation in UK trading venues by non-UK participants and may have a negative impact on the competitiveness of UK markets. The response also recommends a longer implementation period of at least 24 months due to the scale of the operational and technical changes required.

Documents (1) for ISDA Responds to FCA on Commodity Derivatives

Paper on Enhancing Liquidity and Risk Management

As ISDA marks its 40th anniversary this year, it is an opportune time to reflect on the challenges and opportunities faced by the global derivatives markets over the past four decades. Rapid growth, continued innovation, regulatory reform, central clearing, margining,...

Trade Bodies Seek Delay on Third-Country CCP Rules

On October 21, ISDA and nine other trade associations – the Alternative Investment Management Association, the European Association of Co-operative Banks, the European Association of Corporate Treasurers, the European Banking Federation, the European Fund and Asset Management Association, the European...