ISDA Response to CFTC on Trading and Clearing of Perpetual Derivatives

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

Bulk Adherence Upload Page

Please download the attached Excel worksheet and fill out a separate row for each adherence. Then select and upload your completed file using the buttons below. If any errors are found, please correct and re-upload. Note that, if the only...

ISDA Response to HMT SI on Digital Assets

On May 23, ISDA sent a comment letter in response to a draft statutory instrument (SI) from His Majesty’s Treasury (HMT) that establishes a new regulatory framework for digital assets. In the letter, ISDA recommends a review of the proposed...

FX Emerging Markets Documentation

ISDA now hosts the Template Terms published by EMTA, Inc. (the Emerging Markets Traders Association). More information about ISDA’s and EMTA’s respective roles in documentation for emerging markets is available at the following link. The documents can be found in...