On December 19, ISDA submitted a response to the Canadian Securities Administrators (CSA) consultation on proposed amendments to the clearing obligation in Canada. The CSA invited comments on the proposed amendments and on the specific question set out in Annex B of the notice, ie, whether including single-name credit default swaps (CDS) within the scope of the clearing obligation would be appropriate.
In the response, ISDA asks the CSA to provide an appropriate implementation period for firms to prepare for the changes – it is proposed this would be six months from the time the amended instrument enters into force. ISDA also welcomes that the proposed changes are largely in line with global developments and existing requirements on the scope of the clearing obligation in other jurisdictions. Finally, on whether single-name CDS should be included in the scope of the clearing obligation, ISDA recommends that the scope should remain in line with global peer jurisdictions and notes that no other jurisdiction currently mandates clearing for single-name CDS. The response explains that single-name CDS are not sufficiently liquid to warrant a clearing requirement.
Documents (1) for ISDA Responds to CSA Consultation on Revisions to Canadian Clearing Obligation
Latest
ISDA Comment on ICC Application as Clearing Agency
On October 6 ISDA submitted a comment letter to the Securities and Exchange Commission in response to the ICE Clear Credit (“ICC”) application for registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934, including...
Paper on Enhancing Liquidity and Risk Management
As ISDA marks its 40th anniversary this year, it is an opportune time to reflect on the challenges and opportunities faced by the global derivatives markets over the past four decades. Rapid growth, continued innovation, regulatory reform, central clearing, margining,...
Trade Bodies Seek Delay on Third-Country CCP Rules
On October 21, ISDA and nine other trade associations – the Alternative Investment Management Association, the European Association of Co-operative Banks, the European Association of Corporate Treasurers, the European Banking Federation, the European Fund and Asset Management Association, the European...
ISDA and Tokenovate Launch CDM Taskforce
ISDA and Tokenovate have today announced the establishment of a new taskforce within the Fintech Open Source Foundation (FINOS) to accelerate operationalization of the Common Domain Model (CDM). The initiative responds to growing market demand for standardized, interoperable post-trade processing...