ISDA Recommends Aligning Clearing and Trading Obligations07.08.2021
On July 6, ISDA published a briefing paper outlining its support for alignment of the clearing obligation under the European Market Infrastructure Regulation and the derivatives trading obligation under the Markets in Financial Instruments Regulation.
ISDA recommends that alignment be based on transaction and counterparty terms, with a view to enhancing legal certainty for market participants.
CPMI and IOSCO encourage work to enhance transparency regarding new access models and facilitate porting.
CCP clearing will be particularly advantageous for capital treatment.
Users can further consolidate their CDS portfolios in the clearing space.
More buy-side firms will be caught by the new rules.
Exposures and margin calls can be monitored in real-time.