ISDA

Another Keynote Speaker announced to our stellar lineup!?We’re excited to welcome Martin Moloney, Deputy Secretary General of the Financial Stability Board (FSB), as a keynote speaker of the #ISDA 39th AGM to discuss key priorities for 2025.?Register today to hear Mr. Moloney's remarks live in Amsterdam! Details here: https://agm.isda.org/ #isdaagm

AFME has today published a position paper on the European Commission’s Sustainability Omnibus Proposals and its response, submitted jointly with ISDA, to the proposed changes to Taxonomy reporting. ? AFME strongly supports efforts to streamline the EU sustainable finance regulatory framework, ensuring it effectively mobilises capital for the transition while minimizing regulatory burdens. Further work is required to provide certainty to companies, address challenges for the first wave of companies reporting under CSRD, remove Taxonomy reporting requirements which are not providing meaningful information and to address the impact of the reduced CSRD scope on regulation of the financial sector. Regarding the proposed amendments to the Taxonomy Delegated Acts, AFME and ISDA welcome the Commission’s commitment to reducing reporting burdens and providing swift relief for reporters. However, concerns remain as to whether the proposals go far enough to achieve these objectives. Read AFME’s position paper: https://bit.ly/4jb9LHP Access the consultation response:?https://bit.ly/41Xhtzz

Derivatives are used by companies around the globe for a variety of reasons – from risk transfer, to liquidity management, to bolstering returns. According to analysis in ISDA’s report on the value of derivatives, 87.1% of 1,187 companies across seven major stock indices use derivatives to help manage their business. Adoption is similar for both non-financial and financial companies, with 86.6% of non-financial entities and 90% of financial institutions using derivatives. ? This vast universe of companies all over the world use derivatives because they find them useful, and because they create value by enhancing predictability and protecting against losses. ? Read ISDA’s new report on the value of derivatives here: https://lnkd.in/gNCAfXCS ? Watch a short animation on how derivatives create value for companies and can benefit the global economy here: https://lnkd.in/gQKHqZxe

ISDA CEO Scott O'Malia has written a new derivatiViews blog post on the recent EU consultation on possible changes to the Fundamental Review of the Trading Book. “ISDA commends the EC for its willingness to revisit the standards, and we hope it will lead to an improved regulatory framework for market risk capital in the EU. As we work with our members to respond to the consultation, we’ll also continue to engage with regulators in other jurisdictions. We must maintain our focus on a global capital framework that is risk-appropriate for both standardized and internal models,” he writes. Read the full article here:?https://lnkd.in/eD32QGFD

With Hong Kong due to implement revisions to its derivatives reporting rules later this year, ISDA hosted a seminar today in Hong Kong on what the changes will mean, in conjunction with The Depository Trust & Clearing Corporation (DTCC) and Clifford Chance. The event featured: - One panel that explored lessons learned from reporting rule changes in Australia and Singapore, with Xiangjing Ng at ISDA, Kuot Cheung at HSBC, Emma K. at The Derivatives Service Bureau (DSB) Ltd, Priya Kundamal at The Depository Trust & Clearing Corporation (DTCC) and Faye Xia at Crédit Agricole CIB. - The second session looked at the specifics of the Hong Kong rule changes and the advantages of using ISDA’s Digital Regulatory Reporting (DRR) solution for implementation, with Mukul Mago at ISDA, Matthew Meyer Higgins at ISDA, Jane Au Yeung at Morgan Stanley, Polly Lee at the Hong Kong Monetary Authority (HKMA) and Aaron Chen at The Depository Trust & Clearing Corporation (DTCC). Thanks to the speakers and delegates for participating, and thanks to The Depository Trust & Clearing Corporation (DTCC) and Clifford Chance for their support.?

“All over the world, companies rely on banks for intermediation and risk management services to raise #financing for #growth and #investment. If #capital requirements are too high, this can have serious consequences – reduced access to funding, a lack of #hedging solutions and increased vulnerability to external shocks.” Speaking at ISDA’s Trading Book Capital event in Brussels this morning, ISDA CEO Scott O'Malia welcomed the European Commission’s (EC) consultation, published yesterday, on possible amendments to the Fundamental Review of the Trading Book. “ISDA appreciates the EC’s willingness to revisit this important rulebook, and we believe these amendments would lead to a more appropriate, risk-sensitive framework. We will work closely with our members to thoroughly analyze the proposals and develop a response to the consultation.” Thank you to our keynote speakers: John Berrigan, director-general of DG FISMA at the European Commission, and Jonás Fernández álvarez, member of the European Parliament. Read Scott O’Malia’s remarks in full: https://lnkd.in/eN-fF-gF

ISDA CEO Scott O'Malia has written a new derivatiViews blog exploring the long history of risk management and how derivatives continue to be used by companies and governments around the world to mitigate risk, dampen the impact of market volatility and enhance financial performance. ? According to a new report by ISDA, analysis of nearly 1,200 companies across seven major stock indices shows that 87% use derivatives to help manage their business. ? “Whenever trade has occurred between groups of people, tools have existed to allow them to alleviate uncertainty, transfer risk and enhance profitability. Those tools have evolved significantly over the centuries, but the basic concepts remain unchanged – and they continue to be applied by companies and governments around the world for one simple reason: they are valuable,” writes O’Malia. ? Read the new report on the value of derivatives here: https://lnkd.in/gNCAfXCS Read the full article here:?https://lnkd.in/eYPFeUU2

A full house on Wednesday as ISDA and SIFMA hosted a collateral and liquidity management conference in New York, which covered preparing for collateral resiliency, sourcing liquidity and navigating ongoing changes in regulatory requirements. Thanks to BNY, Tradeweb and LSEG (London Stock Exchange Group) for sponsoring the event and to all our speakers and delegates for participating.

Another Keynote Speaker announced! Join us in welcoming José Manuel Campa, Chairperson of the European Banking Authority (EBA), as a keynote speaker of the #ISDA 39th AGM. Register today to hear Mr. Campa's keynote remarks live in Amsterdam! Lock in your registration today here: https://agm.isda.org/ #isdaagm

“Setting capital requirements for globally active banks is a fine balanc-ing act. As regulators learned during the global financial crisis, insuffi-cient capital creates vulnerabilities in the banking sector that can have damaging consequences in times of stress. However, if banks are required to hold disproportionately high levels of capital, this will con-strain their ability to act as intermediaries, negatively affecting liquidity in financial markets. To avoid both scenarios, policy-makers have a critical responsibility to get the balance right. “As the final parts of the Basel III capital framework are implemented around the world, striking this balance is more im-portant than ever. As it stands, the draft Basel III endgame package that US regulators presented for consultation in 2023 would tip the balance too far. Based on ISDA’s analysis of the impact on banks’ trading books, there is no doubt that the rules would constrain the capacity of US banks to offer vital intermediary ser-vices and have a negative impact on mar-ket liquidity.” ISDA CEO Scott O'Malia wrote an article for the Winter 2025 edition of International Banker magazine, in which he explains why the calibration flaws in the Basel III endgame package must be rectified, and why US policymakers should also consider the impact of the proposed rules on market functioning and liquidity, including the provision of central clearing. Read the article in full: https://lnkd.in/ejCZSwdf The print version of the article is available on ISDA’s website:?https://lnkd.in/eBizq58H