On May 21, ISDA responded to a US Commodity Futures Trading Commission (CFTC) request for comment on the trading and clearing of perpetual-style derivatives. In the letter, ISDA underscores the importance of a comprehensive regulatory framework that can address the unique design and risk management features of perpetual derivatives. ISDA highlights several initiatives relevant to this discussion, including the development of standardized legal documentation through the ISDA Digital Asset Derivatives Definitions, which aim to reduce legal uncertainty and counterparty risk for over-the-counter products referencing Bitcoin and Ether. Additionally, ISDA has explored bankruptcy risk management for digital asset markets, focusing on close-out netting and custody. ISDA continues to engage with global regulators on policy matters related to classification, custody and systemic risk, and is examining how technologies like smart contracts and distributed ledger infrastructure can support safe execution and clearing of digitally native or perpetual instruments. ISDA welcomes further engagement between the CFTC and market participants to examine these issues more closely.
Documents (1) for ISDA Response to CFTC on Trading and Clearing of Perpetual Derivatives
Latest
New Report on Japan's Asset Management Ambitions
ISDA and Crisil Coalition Greenwich shows that derivatives are expected to play a pivotal role in Japan’s ambition to become a global leader in asset management, but some barriers need to be reduced to enable the country’s asset managers to...
The Derivatives Market in Japan
A healthy derivatives market is an important element to Japan’s plan to become a global leader in asset management. Asset managers are eager to increase their use of derivatives to better take and manage risk, but note that there is...
DRR Expanded to Cover Hong Kong's Revised Rules
ISDA has expanded its Digital Regulatory Reporting (DRR) solution to support revised derivatives reporting rules in Hong Kong, enabling in-scope firms to implement the changes cost-effectively and accurately. The amendments from the Hong Kong Monetary Authority (HKMA) and the Securities...
Joint Letter on Simplification of EU Taxonomy
On October 6, ISDA, the Association for Financial Markets in Europe (AFME), the European Fund and Asset Management Association (EFAMA), the European Association of Co-operative Banks (EACB) and the European Banking Federation (EBF) published a policy statement in support of...