ISDA, the Alternative Investment Management Association, the European Association of Co-operative Banks, the European Banking Federation, the European Fund and Asset Management Association, Invest Europe, the Managed Funds Association, and the Nordic Securities Association have asked for a permanent exemption from margin requirements for equity options from the European Market Infrastructure Regulation (EMIR) margin requirements.
Equity options play a significant part in the real economy. Imposing variation and initial margin requirements on these instruments would increase funding costs and operational complexity and could result in smaller EU counterparties ceasing to use equity options for hedging and risk mitigation purposes.
In addition, given some major jurisdictions are permanently exempting equity options from margin requirements, EU market participants would face a clear competitive disadvantage when dealing with non-EU counterparties.
Documents (1) for Joint Trade Associations Ask for EMIR Equity Option Margin Exemption
Latest
Response to FASB on KPIs for Business Entities
On April 30, ISDA submitted a response to the Financial Accounting Standards Board’s (FASB) proposal on financial key performance indicators (KPIs) for business entities. In the response, ISDA addressed the implications of KPI standardization, its potential impact on financial reporting...
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.
Response on Commodity Derivatives Markets
On April 22, ISDA and FIA submitted a joint response to the European Commission’s (EC) consultation on the functioning of commodity derivatives markets and certain aspects relating to spot energy markets. In addition to questions on position management, reporting and...
Episode 50: The Value of Derivatives
A new report from ISDA shows that companies all over the world use derivatives to alleviate uncertainty, transfer risk and enhance profitability. ISDA discusses the findings with Boston Consulting Group’s Roy Choudhury. Please view this page via Chrome to access...