feed

derivatiViews

A Predictable Regulatory Framework

Over the past 10 years, a remarkable event has occurred in the world’s political and financial capitals. Policy-makers embarked on a largely consistent agenda of regulatory reform to make derivatives markets more robust and resilient. That global reform initiative is now mostly in place, but there are a number of challenges on the horizon, including Brexit, which must be overcome before all the pieces fall into place.

Hard Brexit Relief Welcome, But Detail Needed

There have been some recent positive signals from European Union (EU) authorities that action will be taken to mitigate disruption to EU 27 participants in the event of a hard Brexit. In particular, European officials have indicated that EU 27 firms will be temporarily able to continue accessing UK central counterparties (CCPs) following a no-deal scenario.

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.

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.

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.

Cross-border Progress

Cross-border recognition is one of those issues that tends not to get too many column inches (at least, outside of ISDA), but it is absolutely fundamental to the functioning of the derivatives market. Get it wrong, and firms face having to simultaneously comply with multiple sets of duplicative and overlapping rules, discouraging cross-border trade and resulting in market fragmentation. That means smaller liquidity pools, higher costs, less efficiency, and less resilience to market shocks.

Cross-border Progress

Cross-border recognition is one of those issues that tends not to get too many column inches (at least, outside of ISDA), but it is absolutely fundamental to the functioning of the derivatives market. Get it wrong, and firms face having to simultaneously comply with multiple sets of duplicative and overlapping rules, discouraging cross-border trade and resulting in market fragmentation. That means smaller liquidity pools, higher costs, less efficiency, and less resilience to market shocks.

The Steps to Benchmark Reform

The reforms to interest rate benchmarks will have a big impact across financial markets, from Wall Street to Main Street. Making sure the entire market appreciates the scale of the issue and takes early action is therefore a priority. The question is where to start with implementation. ISDA and our partner trade associations have tried to help with that question, publishing a checklist of steps firms can take now.

The Steps to Benchmark Reform

The reforms to interest rate benchmarks will have a big impact across financial markets, from Wall Street to Main Street. Making sure the entire market appreciates the scale of the issue and takes early action is therefore a priority. The question is where to start with implementation. ISDA and our partner trade associations have tried to help with that question, publishing a checklist of steps firms can take now.

Pages