On May 8, ISDA and the FIA responded to the Monetary Authority of Singapore’s (MAS) consultation on recovery and resolution planning and enhancement of resolution powers for capital market infrastructures.
The response supports the proposed framework for recovery and orderly wind-down planning for capital market infrastructures, while recommending greater clarity and safeguards on certain aspects of the framework. Key points include clearer specification of recovery plan content and governance, stronger transparency and engagement with clearing members, and explicit exclusion of initial margin haircutting from recovery and resolution tools.
The associations support the introduction of statutory bail-in powers, but stress respect for creditor hierarchy, netting and set-off protections, and recommend the introduction of a no-creditor-worse-off safeguard. They also call for clearer triggers, caps on loss allocation tools and further guidance on entry into resolution and compensation.
Documents (1) for ISDA, FIA Respond to MAS Consultation on Recovery and Resolution Planning for Market Infrastructures
Latest
A Financial Markets Revolution
Every financial center has its own unique features, but it was particularly fitting that ISDA’s recent Annual General Meeting (AGM) was held in Boston – not only a global hub for asset management and insurance, but also a city that...
ISDA AGM Studio: Nnamdi Okaeme & John Pucciarelli
Marking the 10‑year anniversary of the ISDA Standard Initial Margin Model (ISDA SIMM), Joel Clark, senior director, communications, at ISDA, speaks with Nnamdi Okaeme, ISDA’s head of SIMM, and John Pucciarelli, head of partnerships and director of industry engagement at...
Response on Legal Frameworks for Carbon Credits
On May 4, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Commission’s (EC) consultation on a legal framework for the inclusion of international carbon credits within the EU’s 2040 climate law framework. In the...
ISDA AGM Studio: Julia Hueckel and Chris Zuehlke
Julia Hueckel, director of global regulatory policy at Coinbase, and Chris Zuehlke, global head of Cumberland and partner at DRW, speak with Nicolette Cone, ISDA’s chief of staff and associate general counsel, on the rapidly evolving legislative framework for digital...