The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Nine Interdealer Brokers Indicate Commitment to European CDS CCP

Following the announcement by the regulatory community that it will be working together to oversee the credit default swap (CDS) central counterparty clearing (CCP) market, the interdealer broker community has also indicated its commitment to the European initiatives. According to an announcement by the International Swaps and Derivatives Association (ISDA), nine of the largest players in the market have signed a letter to European Commissioner for Internal Market and Services, Charlie McCreevy, confirming their engagement to use EU-based central clearing for eligible EU CDS contracts by end July this year.

“These efforts mirror the engagement the industry has made in other jurisdictions in the interests of a globally cohesive regulatory framework for clearing,” says the association.

The firms committed to the CCP endeavour are Barclays Capital, Citigroup Global Markets, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley and UBS. The letter also commits these firms to work closely with infrastructure providers, regulators and the European Commission in resolving outstanding technical, regulatory, legal and practical issues.

According to ISDA, each firm will make an individual choice on which CCP might best meet its risk management objectives, subject to regulatory approval of any such clearing house in Europe.

Eraj Shirvani, ISDA chairman and head of fixed income for EMEA at Credit Suisse, reckons the agreement is the first step for the industry to make clear its agenda to the regulatory community. “This commitment provides the basis for constructive dialogue with the European Commission, both on arrangements for central clearing and on related regulatory matters. ISDA and its member firms will continue to work closely with the European Commission, national and international regulators and infrastructure providers to ensure a sound and efficient regulatory framework for central clearing of the CDS market,” he explains.

Related content

WEBINAR

Upcoming Webinar: The post-Brexit UK sanctions regime – how to stay safe and compliant

Date: 11 March 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes When the Brexit transition period came to an end on 31 December 2020, a new sanctions regime was introduced in the UK under legislation set out in the Sanctions and Anti-Money Laundering Act 2018 (aka the Sanctions Act). The...

BLOG

Join Next Week’s RegTech Summit Virtual to Discuss Regulation Post-Covid, the Brexit Regime and Ongoing Challenges of KYC and AML

The coronavirus pandemic has changed the way we work and it is becoming increasingly clear that the business environment will be irrevocably changed by the 2020 experience. Remote engagement has become more important than ever, and agility and versatility have become valuable characteristics in this new normal. At the same time, regulatory oversight is becoming...

EVENT

TradingTech Summit London

The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.

GUIDE

Regulatory Data Handbook 2020/2021 – Eighth Edition

This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...