On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy objective, the associations stress that the rules must not inadvertently disrupt legitimate trading, hedging, collateral and securities lending activity. Key recommendations include a treaty rate exemption like Germany’s approach, a broader ordinary business exemption for regulated financial institutions, protection for temporary securities transfers for lending or collateral purposes and implementation no earlier than January 1, 2028. The letter also highlights evidence from Austria, where changes to withholding tax rules were followed by a 47% reduction in lendable securities, illustrating the potential liquidity and market efficiency consequences of poorly calibrated rules.
Documents (1) for ISDA, AFME and ISLA Respond to Dutch Ministry of Finance on Dividend Stripping
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Response on Dividend Stripping
On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy...
ISDA Launches DRR Tracer Agent
ISDA has launched an artificial intelligence (AI) agent for its Digital Regulatory Reporting (DRR) solution that will bring greater transparency to users by tracing the rules and decisions that have guided the development of the DRR. The ISDA DRR Tracer...
US FX Derivatives Review
ISDA has expanded its SwapsInfo website to include data on US foreign exchange (FX) derivatives, extending the platform's coverage beyond interest rate and credit derivatives to a third over-the-counter derivatives asset class. The US FX Derivatives Review covers trading activity...
Response to FCA on Post-trade Transparency
On October 16, ISDA responded to the Financial Conduct Authority’s (FCA) consultation CP26/30. While the consultation is principally focused on cash equity market structure and transparency, ISDA responded to questions on the potential inclusion of equity swaps in the scope...