The industry’s progress in reducing counterparty credit risk.
ISDA and the industry are committed to expanding clearing and portfolio compression efforts as part of the overall goal to reduce counterparty risk. Our progress is reflected by the increasing range and volume of transactions that are cleared and compressed.
The size of the CDS market has been reduced by more than 75 percent through a combination of clearing and compression; more than $15 trillion has been centrally cleared while portfolio compression has eliminated more than $70 trillion.
Over 40 percent of the interest rate swaps market is now centrally cleared. Another $106 trillion of interest rate swaps has been eliminated due to portfolio compression.
Below is a list of analyses of existing clearing services, comment letters to regulators and industry commitments related to ISDA and the industry’s work in OTC derivatives clearing and portfolio compression. Additional information on clearing and portfolio compression is available from TriOptima triReduce, Markit and ICE Clearing.
To learn more about ISDA’s work in the industry’s clearing commitments to regulators, visit the G20 Commitments page.
Latest
Request to Extend Relief on No-Action Letter 22-18
On July 3, ISDA requested to extend the relief under the Commodity Futures Trading Commission's (CFTC) no-action letter No. 22-18. ISDA requests that the relief is extended until further action by the CFTC resolves the overlapping and contradictory reporting obligations...
Industry Report under Project Guardian
ISDA and Ant International led the Project Guardian FX industry group to develop a new report for implementing tokenised bank liabilities and shared ledger in cross-border payments and foreign exchange (FX) settlement. The joint report is produced under the Monetary...
ISDA Letter to FASB on Agenda Consultation
On June 30, ISDA submitted a comment letter to the Financial Accounting Standards Board (FASB) in response to the proposal File Reference No. 2025-ITC100, Agenda Consultation. In the letter, ISDA believes the highest priority should be given to expanding the hedge...
Joint Paper on UK EMIR Reform
On July 1, ISDA and UK Finance published a paper, which recommended a set of reforms for the UK European Market Infrastructure Regulation (UK EMIR), carefully considering each EU EMIR 3.0 reform and asking whether we would wish to adopt...