In a joint statement, the negative impacts the proposal would have on EU capital markets including introducing fragmentation, loss of netting benefits and reducing the EU’s resiliency to market stresses, are highlighted by the associations.
While acknowledging potential benefits of the European Commission’s latest proposals, the associations noted that the changes could make EU firms less competitive and have a negative impact on the derivatives market.
Following a delay in the original implementation date of 25 May 2022, the CFTC rewrite has now gone into effect with the aim of correcting errors in swap data.
Scott O’Malia, ISDA’s chief executive officer, provides insights into how improving consistency within reporting will allow greater transparency for derivatives trading.
Trade association highlights close-out netting as the most critical legal issue that needs addressing, while also pinpointing risk governance and management as areas to improve.
The Futures and Derivatives Law creates potential for a huge new market – but means transactions with Chinese entities are likely to lose their UMR exemption, less than a month ahead of the final deadline.
Scott O’Malia, ISDA CEO, provides additional insight into the firm’s position on proposed changes to post-trade deferrals regime.
Trade bodies say the current settlement discipline provisions under CSDR have not been drafted with derivatives transactions in mind and call for a revision.
The crypto-native liquidity provider becomes the first principal-at-risk crypto trading firm to become a primary member.
Swaps and derivatives association welcomed the CFTC’s earlier offered relief but said changes including the implementation of ISO 20022 could result in further overhauls.