About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ISDA Reiterates Support for Global Trade and Counterparty Exposure Repositories in Comment Letter on CPSS/IOSCO Consultative Report

Subscribe to our newsletter

The International Swaps and Derivatives Association, Inc. (ISDA) filed a comment letter on September 23 with the Committee on Payment and Settlements Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) in response to their consultative report on over-the-counter (OTC) derivatives data reporting and aggregation requirements.

In the letter, ISDA reiterated the need for a global view of trade repositories (TRs), data reporting and aggregation requirements, and hopes that the CPSS/IOSCO consultative report will assist the fostering of consistency of standards internationally. ISDA has worked with its members and with regulators to establish TRs for credit, interest rate and equity derivatives and industry efforts are continuing to establish TRs for commodities derivatives and foreign exchange contracts.

“An effective, global trade repository infrastructure is a shared aim of the regulatory community and OTC derivatives markets,” said Conrad Voldstad, ISDA’s Chief Executive Officer. “We are concerned that this aim may be undermined by the pursuit of local regulatory mandates that may lead to a fragmented TR system.”

The letter notes that ISDA believes that fragmentation of TRs will introduce operational complexity, undermine risk reduction and impose unnecessary costs. ISDA considers that the role of TRs in systemic oversight makes it essential that they are operationally robust, and that there is no fragmentation of their function.

ISDA’s comment letter to the CPSS and the IOSCO also reiterated the Association’s call for the development of a single “Counterparty Exposure Repository” to provide an aggregated risk view for regulators (of the net mark-to-market exposure for each counterparty portfolio, the corresponding collateral and the firms’ calculation of net exposure after the application of collateral).

The letter expresses strong support for common industry standards to facilitate data aggregation and analysis by regulators and highlights the work the industry is doing with regards to Legal Entity Identifiers (LEIs), Unique Product Identifiers (UPIs) and the development of a product taxonomy or classification for OTC derivatives.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Sponsored by FundGuard: NAV Resilience Under DORA, A Year of Lessons Learned

The EU’s Digital Operational Resilience Act (DORA) came into force a year ago, and is reshaping how asset managers, asset owners and fund service providers think about operational risk. While DORA’s focus is squarely on ICT resilience and third-party dependencies, its implications extend deep into core operational processes that are critical to market integrity, investor...

BLOG

smartKYC QnA: Accelerating Due Diligence at Scale

Hugo Chamberlain is the chief commercial officer of UK-based smartKYC, which has been automating the KYC process since 2014. Data Management Insight spoke to Hugo to find out how the company is helping financial institutions streamline their onboarding processes. Data Management Insight: Hello Hugo. When was smartKYC created and how does it serve financial institutions?...

EVENT

AI in Capital Markets Summit London

Now in its 3rd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Corporate Actions 2009 Edition

Rather than detracting attention away from corporate actions automation projects, the financial crisis appears to have accentuated the importance of the vital nature of this data. Financial institutions are more aware than ever before of the impact that inaccurate corporate actions data has on their bottom lines as a result of the increased focus on...