ISDA and IIF Respond to BCBS Consultation on CCR Management

On August 28, ISDA and the Institute of International Finance (IIF) submitted a joint response to the Basel Committee on Banking Supervision’s (BCBS) consultation on guidelines for counterparty credit risk (CCR) management. The new guidelines represent an update to the Sound Practices for Banks’ Interactions with Highly Leveraged Institutions, published in January 1999, to incorporate recent lessons and best practices. In the response, the associations stress the guidelines should be risk-based and proportional, considering a diverse universe of counterparties and financial markets across the world. The associations believe a common understanding and coordination between central banks, supervisors and banks can enhance the effectiveness of CCR practices. The response also highlights the importance of having flexible disclosure requirements based on the risk profile of different client segments, acknowledging that banks may encounter challenges in obtaining certain information from their counterparties. Finally, the response notes that proportionality is central to efficient regulation, and impractical measures and those with high implementation costs relative to their benefits should be removed to prevent an overly burdensome framework that could undermine the guidelines’ objectives

Documents (1) for ISDA and IIF Respond to BCBS Consultation on CCR Management

Joint Paper on UK EMIR Reform

On July 1, ISDA and UK Finance published a paper, which recommended a set of reforms for the UK European Market Infrastructure Regulation (UK EMIR), carefully considering each EU EMIR 3.0 reform and asking whether we would wish to adopt...

Response to FCA on UK EMIR Reporting

On June 30, ISDA submitted a response to chapter 5 of the UK Financial Conduct Authority’s (FCA) quarterly consultation CP25/16 on trade repository reporting requirements under the UK European Market Infrastructure Regulation (UK EMIR). Chapter 5 proposes ‘Amendments to the...

CDS Trading Activity in EU, UK and US Markets

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...