ISDA Response to CMESC Proposal to Establish a New Clearing Agency to Clear US Treasury Transactions

ISDA submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) in response to the CME Securities Clearing, Inc.(CMESC)  application for registration as a clearing agency to clear US Treasury Transactions.

ISDA encourages the SEC to facilitate clearing of U.S. Treasuries at additional clearing agencies in light of the SEC’s clearing mandate. Subject to CMESC making the amendments and clarifications discussed in the comment letter with respect to its clearing model, ISDA strongly supports CMESC’s application to register as a clearing agency. The proposed framework for clearing in the CMESC application would create a competitive U.S. Treasury clearing landscape that, in turn, would provide for a more resilient U.S. Treasury market.

Among others things, ISDA’s comments recommend that CMESC amend and clarify certain rules and procedures to ensure favorable regulatory capital treatment for prudentially regulated market participants that clear for other market participants.

Documents (1) for ISDA Response to CMESC Proposal to Establish a New Clearing Agency to Clear US Treasury Transactions

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...