ISDA submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) in response to the CME Securities Clearing, Inc.(CMESC) application for registration as a clearing agency to clear US Treasury Transactions.
ISDA encourages the SEC to facilitate clearing of U.S. Treasuries at additional clearing agencies in light of the SEC’s clearing mandate. Subject to CMESC making the amendments and clarifications discussed in the comment letter with respect to its clearing model, ISDA strongly supports CMESC’s application to register as a clearing agency. The proposed framework for clearing in the CMESC application would create a competitive U.S. Treasury clearing landscape that, in turn, would provide for a more resilient U.S. Treasury market.
Among others things, ISDA’s comments recommend that CMESC amend and clarify certain rules and procedures to ensure favorable regulatory capital treatment for prudentially regulated market participants that clear for other market participants.
Documents (1) for ISDA Response to CMESC Proposal to Establish a New Clearing Agency to Clear US Treasury Transactions
Latest
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.
10 Years of the ISDA SIMM
As the derivatives industry prepared for the September 2016 implementation of initial margin requirements for non-cleared derivatives, one challenge stood out: counterparties needed to agree on the amount of initial margin to be exchanged. But if each firm developed its...
Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...
ISDA Response on Hedge Accounting Guidance
On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...