On February 19, ISDA submitted a response to a consultation from the Bank of England (BoE) on a proposal to introduce a set of rules for UK financial market infrastructures (FMIs), including central counterparties (CCPs).
In the response, ISDA expresses its support for the proposed fundamental rules (FRs). ISDA would encourage further references to transparency throughout the rules. ISDA believes transparency should be one of the guiding principles that CCPs should follow in the conduct of their business, and this could be reflected under FR 1, 2 and/or 3. ISDA would also welcome further references to transparency in relation to FR 9, in the context of operational resilience, given that market participants do require adequate information on CCPs’ operational resiliency to perform their third-party risk assessments.
ISDA also appreciates the addition of FR 10, which recognizes the specific nature of CCPs by requiring them to identify, assess and manage the risks that their operations could pose to the stability of the financial system. ISDA believes the outcome of the assessment should also be shared with CCPs’ participants, which would then be able to factor this into their own risk management.
Click on the link to read the full response to the BoE consultation.
Documents (1) for ISDA Responds to BoE Consultation on Fundamental Rules for FMIs
Latest
How and Why Pension Funds Use Derivatives
With over $58 trillion in assets globally, pension fund managers are major participants in financial markets and play a vital role in helping to provide post-retirement incomes for plan employees. Meeting such an important goal requires careful consideration of investment...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Climate Risk Scenario Analysis Phase 4
Climate scenario analysis has become a useful tool for banks and financial institutions to understand the short- and long-term financial risks associated with climate change, particularly in light of evolving regulations and an increased emphasis on reducing the impact of...
ISDA & EMTA Market Practice 45
ISDA & EMTA jointly published the attached updated market practice regarding the determination of barrier events for Brazilian Real non-deliverable continuously monitored barrier option transactions.