ISDA and SIFMA Response to US Basel III NPR

On January 16, ISDA and the Securities Industry and Financial Markets Association (SIFMA) submitted a joint response on the US Basel III ‘endgame’ notice of proposed rulemaking (NPR). The response focuses on the Fundamental Review of the Trading Book (FRTB), the revised credit valuation adjustment (CVA) framework, the securities financing transactions requirements and elements of the standardized approach to counterparty credit risk rules.

Based on an industry quantitative impact study with input from eight US global systemically important banks, the proposed FRTB and CVA framework would result in a 129% increase in market risk and CVA risk-weighted assets under the new expanded risk-based approach versus the current US standardized approach.

In the response, the associations propose a number of calibration changes to ensure the rules are appropriate and risk sensitive and avoid adverse consequences to US capital markets.

Documents (1) for ISDA and SIFMA Response to US Basel III NPR

Response to CSA on Clearing Obligation

On December 19, ISDA submitted a response to the Canadian Securities Administrators (CSA) consultation on proposed amendments to the clearing obligation in Canada. The CSA invited comments on the proposed amendments and on the specific question set out in Annex B...

Derivatives Regulations and Usage in Japan

Japan’s regulatory landscape has generally been supportive of derivatives use by various segments of the buy side. While there are some guidelines on the purposes for which derivatives can be used by certain entities, which are not unique to Japan,...