ISDA

It’s not too early to start planning for the fall! Check out the lineup of upcoming #ISDA conferences across New York, London, Singapore and Hong Kong with more to come! Whether you are new to the industry or can’t get enough of the discussion on today’s critical topics in the #derivatives market, there’s a lot in store with plenty of networking opportunities! Start marking your calendars and lock in your registration today! https://lnkd.in/eZhPjuM

ISDA has today published a whitepaper that explores the adoption of the internal models approach (IMA) under the Fundamental Review of the Trading Book (FRTB). A significant number of banks that use the IMA under the Basel 2.5 framework plan to transition entirely to the standardized approach (SA) under the FRTB. Banks that intend to use the IMA under the FRTB generally only expect to do so for a limited number of trading desks. Several banks plan to adopt the IMA on a phased basis, initially implementing the SA and transitioning to the IMA only once they have made a compelling business case and developed the necessary capabilities for the relevant trading desks. In developing this paper, ISDA worked with EY to engage with FRTB executive sponsors from 26 global banks with trading operations across all major global jurisdictions. The paper sets out the drivers of capital model adoption, bank-specific and broader industry implications of adopting the IMA and the potential steps that could be taken to incentivize increased IMA adoption.   “Under the FRTB, our paper and other studies indicate that the majority of banks around the world with the largest trading businesses will rely on the standardized approach (SA) rather than internal models. FRTB-SA is a big improvement over its predecessor and banks will, of course, continue to employ sophisticated internal models as part of their risk management practices, even if these are not used for capital. But the IMA can potentially improve the alignment between risk and capital, facilitating enhanced management of trading businesses. That’s why we have made recommendations to incentivize the adoption of internal models, which we hope will be carefully considered,” says Mark Gheerbrant, global head of risk and capital at ISDA. Read the paper here: https://lnkd.in/esW8gGfb

ISDA was delighted to host an event on margin and financial stability in London today with Nathanaël BENJAMIN, executive director for financial stability, strategy and risk at the Bank of England. Following opening remarks from ISDA’s Steven Kennedy, Benjamin gave a keynote address exploring lessons learned from recent episodes of market turbulence and the need for counterparties to be prepared for the potential #liquidity need arising from sharp #margin calls. “As variation and initial margins go up in stress, firms need to be prepared for the liquidity need that will arise. Enhancing market participants’ liquidity preparedness to meet their #collateral requests would go a long way towards reducing procyclical behaviors in response to large margin calls and preventing the liquidity crises that have amplified past financial shocks. This requires a high degree of #transparency, effective stress testing, and improvements to operational processes,” said Benjamin. Joining Benjamin on-stage for a panel discussion after his remarks, Adam Jackson, vice president, government affairs and public policy at BlackRock and Toks Oyebode, executive director, office of regulatory affairs at J.P. Morgan gave valuable market perspectives on collateralization and liquidity. Thanks to The Investment Association for partnering with us on this event, and to chief executive Chris Cummings for his closing remarks. Read Benjamin’s remarks in full: https://lnkd.in/eCMtuQTi

Agenda posted! See what's coming up at the ISDA Treasury Markets and Global Regulations Forum in London on October 10. This event will bring delegates cutting-edge intelligence and analysis on key industry topics, as well as exclusive insights from leading regulators and senior market leaders. Held in-person, the event will feature a mix of high-level keynote speakers, panels on critical topics like market #liquidity, #regulatoryreporting and Treasury #clearing, plus valuable networking opportunities. Early Registration is Open – Register today to save! https://shorturl.at/UmNcj

ISDA is now accepting nominations for the next cohort of the ISDA Future Leaders in Derivatives (IFLD) program, a prestigious opportunity for #derivatives market professionals to engage with peers and stakeholders on an important industry issue and contribute their perspectives on the way forward. The next group of IFLD participants will be tasked to explore the policy and operational aspects of #collateral management, and what market participants and infrastructure providers need to do to make sure collateral gets to where it needs to be, when it needs to be there. “This topic calls for a wide range of perspectives and professional expertise, spanning #operations, #risk management, #technology, #policy and #legal, so we’ll be looking to convene a group that can bring that #diversity of thought,” says ISDA chief executive Scott O'Malia. Read Scott’s latest derivatiViews blog calling for future leaders to explore collateral and #liquidity: https://lnkd.in/e5VupuBm The deadline for applications for the IFLD is July 26 and the program will begin on October 9. For more information about the application process, download the call for nominations: https://lnkd.in/eickWZsr

ISDA has published a whitepaper that explores the issues faced by financial and non-financial institutions in applying #hedge #accounting under US Generally Accepted Accounting Principles. The paper advocates for a holistic review of the hedge accounting framework to address limitations, improve alignment with #risk management activities and enhance the usefulness of financial statements. Read the paper here: https://lnkd.in/gYpWmvUt

Last days to register! Join us in London this Thursday for 'The Bank of England on Margin and Financial Stability'. Regulators are increasingly looking at margin practices, transparency and procyclicality following a series of stress events that caused margin requirements to surge. In this special event, Nat Benjamin, Executive Director for Financial Stability Strategy and Risk at the Bank of England, discusses key issues related to margining and haircuts and associated financial stability considerations. View full details and register for your complimentary place here: https://lnkd.in/eNbWeCWF #margin #liquidity #procyclicality

ISDA CEO Scott O'Malia has published a new derivatiViews blog that describes two new initiatives to help firms prepare for terminations and ensure a key part of the process is more efficient.   Terminating a derivatives contract has never been the simplest of tasks, especially during volatile markets, but the process has become even more complicated in recent years due to various post-crisis regulatory reforms.   The ISDA Close-out Framework is designed to illustrate the various steps and decisions firms need to take and is intended as a preparatory tool for future stress events. The ISDA Notices Hub allows the instantaneous delivery and receipt of termination notices via a secure online platform, eliminating risk exposures and potential losses that can result from delays in terminating derivatives contracts.   Read the article here https://lnkd.in/eyrv6VjA

Scott O'Malia, CEO at ISDA, returns for his third appearance on Ahead of the Curve, joining John Pucciarelli, Head of Industry Engagement at Acadia, for our special 30th episode. They discuss the benefits and adoption of the Common Domain Model (CDM), the latest capital reforms including Basel III end game, and new regions adopting Uncleared Margin Rules in 2024. Scott also shares his insights on geopolitical risks and their impacts on the OTC derivatives market. Don’t miss this episode! Watch the full episode : https://hubs.la/Q02FChWb0 Listen to the episode : https://hubs.la/Q02FC0C90 #Podcast #Finance #ISDA #Acadia #CDM #BaselIII #UnclearedMarginRules

Learn the foundations of core derivatives industry topics at one of ISDA’s upcoming Masterclasses on topics including Derivatives Documentation, Collateral Management and Accounting. ISDA Masterclasses are small group learning courses designed and lead by experienced ISDA Staff and industry practitioners to provide you with an in-depth understanding of a variety of essential derivatives topics. All classes are under 25 students which allows you the opportunity to get hands-on with the material, speak one-on-one with instructors and apply what you are learning to your real-life scenarios. Both instructional and interactive, participants should leave their ISDA Masterclass equipped with practical knowledge and a deeper understanding of the topic and the derivatives industry. Visit www.isda.org/events for more details.