ICYMI ISDA AGM 2019 Round Up


The ISDA 2019 AGM is now over. For those that saved time by not travelling, here's most of what came out from the event.

The Fundamental Review of the Trading Book and Emerging Markets

In January 2019, the final piece of Basel III fell into place with the publication of the revised framework for market risk capital, known as the Fundamental Review of the Trading Book (FRTB).

The FRTB makes a number of important changes, including the introduction of a more risk-sensitive standardized approach (SA), desk-level approval for internal models, and a capital add-on for non-modellable risk factors (NMRFs).

ISDA Common Domain Model Goes Open Source

The ISDA Common Domain Model has moved to version 2, and is now accessible by anyone including non-ISDA members.

Check Out ISDA’s New and Improved SwapsInfo Website with New Features and Interactive Charts!!!


New features include:

Video: What is ISDA Create – IM?

Derivatives trading and processing are becoming more automated, but the legal documents that back these trades are still reliant on paper and wet signatures. This slows down the time it takes to negotiate a document, and creates inefficiencies throughout the whole process.

Clearing Incentives, Systemic Risk and Margin Requirements

Central clearing of standardized derivatives and margin requirements for non-cleared derivatives are two of the basic tenets of global financial regulatory reform. They are also inter-related: the purpose of margin requirements is to both reduce systemic risk and promote or incentivize central clearing.

Recent studies and research into clearing incentives and margining raise questions about whether certain aspects of the requirements do in fact support these key policy goals. These questions include:

Industry Groups Set Out Impact of Hard Brexit on Derivatives

ISDA, the Association of German Banks (Bundesverband deutscher Banken), the Italian Financial Markets Intermediaries Association (Associazione Intermediari Mercati Finanziari), the Banking and Payments Federation Ireland (BPFI), the Danish Securities Dealers Association (Børsmæglerforening Danmark), the Dutch Banking Association (Nederlandse Vereniging van Banken) and the Swedish Securities Dealers Association (Svenska Fondhandlareföreningen) have jointly published a paper that warns of the disruptive impact of a ‘hard’ Brexit on derivatives markets.

The Inside Story of DerivHack | The Beginning of Something Big?

The inside story of DerivHack and how the ISDA CDM might be the beginning of something big

A Solution for Consistency

Earlier this year, when testifying to a US Congressional committee, I proposed a holistic solution to the lack of harmonization between Commodity Futures Trading Commission (CFTC) and Securities and Exchange Committee (SEC) rules.

Ten Years On

Anniversaries are important. They provide an opportunity to look back on important events in the past, and consider how they shaped the present. Ten years on from the collapse of Lehman Brothers, it’s therefore natural that people think back on what happened and ask what has changed.