On June 15, ISDA and the European Banking Federation (EBF) submitted a response to ESMA’s consultation on post-trade risk reduction (PTTR). ISDA and the EBF stress that firms still have sizable bilateral portfolios and propose that transactions that are a result of PTRR should be allowed to remain uncleared, for derivatives transaction which would otherwise be subject to the clearing obligation (CO) under EMIR. In order to address concerns in relation to the potential risks of firms circumventing the CO, ISDA and the EBF propose strict conditions for administrative transactions resulting from PTRR. Therefore, PTRR should be performed by independent providers, there should be a requirement to prove that risk reduction exercises reduce the risk in each bilateral portfolio, and that each bilateral transaction resulting from PTRR exercises must be subject to an equal and opposite transaction facing a central counterparty.
Documents (1) for ISDA and EBF Respond to ESMA Consultation on PTRR Services with Regards to Clearing Obligation
Latest
Response to BoE on Clearing Exemption for PTRR
On March 11, ISDA submitted a response to the Bank of England’s consultation on a proposed approach to exempting post-trade risk reduction (PTRR) transactions from the derivatives clearing obligation under Article 4 of the European Market Infrastructure Regulation (EMIR). ISDA...
IQ Interview with David Bailey
The Bank of England’s Prudential Regulation Authority recently finalized its Basel 3.1 framework for implementation at the start of 2027. David Bailey, executive director for prudential policy, talks to IQ about the importance of global consistency and the need to...
LSEG's TradeAgent Integrates ISDA DRR
ISDA has announced that LSEG has integrated ISDA’s Digital Regulatory Reporting (DRR) solution into its Post Trade Solutions business, TradeAgent, representing a significant milestone in the industry deployment of the ISDA DRR. The ISDA DRR converts an industry-agreed interpretation of...
Global FX Derivatives Market Overview
Global FX derivatives average daily turnover reached $6.6 trillion in April 2025, roughly double its level in April 2013. While FX swaps remain the largest segment in absolute terms, recent growth has been driven by outright forwards and FX options,...