United States

Topic: Clearing and settlement

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FSB publishes report on OTC Derivative Market reforms: Implementation progress in 2022

On 7 November 2022, the Financial Stability Board (FSB) published a report on OTC Derivatives Market Reforms: Implementation progress in 2022. The report tracks national and regional progress in implementing the G20 reforms to global over-the counter (OTC) derivatives market reforms following the 2007 Global Financial Crisis. The report finds that overall implementation across the … Continue Reading

CPMI /IOSCO report ‘Client clearing: access and portability’

On 8 September 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Client clearing: access and portability’. The report considers the benefits and challenges of new access models to central counterparty (CCP) clearing and client-position portability. The report: Describes “direct” and “sponsored” access models … Continue Reading

CPMI / IOSCO discussion paper on CCP practices to address non default-losses

Introduction On 4 August 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a discussion paper on central counterparty (CCP) practices to address non default-losses (NDLs). Non default events can threaten a CCP’s viability as a going concern and its ability to continue providing critical services. … Continue Reading

FSB report on options to improve adoption of the LEI

On 7 July 2022, the Financial Stability Board (FSB) published a report exploring options to improve the adoption of the Legal Entity Identifier (LEI), in particular for use in cross-border payments. The report explores benefits that could accrue from the use of the LEI in cross-border payment systems and, in close coordination with the Global … Continue Reading

FSB, CPMI and IOSCO analysis highlights need to continue work on CCP financial resources

On 10 March 2022, the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO) co-published a report analysing existing financial resources and tools for central counterparty (CCP) recovery and resolution, which confirmed the need for further work on … Continue Reading

FSB publishes implementation progress of OTC derivatives market reforms in 2021

On 3 December 2021, the Financial Stability Board (FSB) published a report regarding the implementation progress of over-the-counter (OTC) derivatives market reforms in 2021. The report tracks the international progress in implementing G20 reforms to global OTC derivatives markets following the 2008 global financial crisis. The following progress has been made since the previous annual … Continue Reading

IOSCO and CPMI publish a discussion paper on client clearing: access and portability

On 29 November 2021, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a discussion paper on client clearing. The discussion paper considers issues concerning access to central counterparties (CCPs) and effective porting practices. The discussion paper does not intend to provide guidance on … Continue Reading

The Bank of England’s approach to tiering incoming CCPs

On 8 November 2021, the Bank of England (BoE) issued a Consultation Paper and a draft Statement of Policy on its approach to ‘tiering’ non-UK central counterparties (CCPs) based on the level of systemic risk they could pose to UK financial stability. The consultation closes on 25 February 2022. Under the BoE’s tiering proposals: Incoming … Continue Reading

CPMI calls for ideas on solutions to expand PvP settlement

On 7 October 2021, the Committee on Payments and Market Infrastructures (CPMI) issued a call for ideas on payment-versus-payment (PvP) mechanisms. As part of the G20 cross-border payments roadmap, the CPMI is developing proposals for increased PvP adoption by encouraging enhancements to existing PvP arrangements and/or the design of new public and/or private sector solutions. … Continue Reading

FSB / IMF latest progress report on the G20 Data Gaps Initiative

On 8 October 2021, the Financial Stability Board and the International Monetary Fund co-published their sixth progress report on the G20 Data Gaps Initiative. Key messages in the progress report include: Significant progress has been achieved during phases 1 and 2 of the Data Gaps Initiative in closing identified policy-relevant data gaps. Although the initiative … Continue Reading

GFXC releases guidance paper on Last Look, publishes disclosure templates

On 18 August 2021, the Global Foreign Exchange Committee (GFXC) issued a guidance paper on ‘last look’ trading within the Foreign Exchange market. Last look is a practice used in electronic trading where a market participant has a final opportunity to accept or reject a trade request made on its quoted price. The GFXC is … Continue Reading

MoU between the FCA, BoE and SEC regarding certain OTC derivatives entities that operate on a cross border basis

On 6 August 2021, the FCA published a Memorandum of Understanding between itself, the Bank of England and the United States Securities and Exchange Commission regarding consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter derivatives entities that operate on a cross-border basis in the United States and the … Continue Reading

CPMI work programme for 2021-22

On 5 August 2021, the Committee on Payments and Market Infrastructures (CPMI) published its work programme for 2021-22. The annual work programme has been publicly released for the first time as part of the CPMI’s commitment to increased transparency. The annual work programme will focus on shaping the future of payments and addressing risks in … Continue Reading

GFXC updates FX Global Code, publishes new templates for disclosures and guidance paper on Pre-hedging

On 15 July 2021, the Global Foreign Exchange Committee (GFXC) completed its review of the FX Global Code, updating its principles of good practice in the foreign exchange market in several key areas. The GFXC also published templates for industry participants to use in improving disclosures and assisting with transaction cost analysis. The GFXC is … Continue Reading

IOSCO issues industry surveys on conduct risks in leveraged loans and collateralized loan obligations

On 24 May 2021, the International Organization of Securities Commissions (IOSCO) issued four questionnaires for industry participants on conduct risks in leveraged loans (LL) and collateralized loan obligations (CLO) targeting bank lenders, CLO investors, CLO managers and LL sponsors. The purpose of the questionnaires is to support IOSCO’s project by furthering its understanding of the … Continue Reading

A global perspective on derivatives regulation

On 17 May 2021, the International Organisation of Securities Commissions (IOSCO) published a speech by Ashley Alder (CEO Hong Kong Securities and Futures Commission and IOSCO chair) entitled A global perspective on derivatives regulation. Key points in the speech include: Global regulatory authorities are still monitoring the implementation and effectiveness of the post-crisis reforms in … Continue Reading

GFXC publishes Request for Feedback on draft guidance papers for pre-hedging and last look

On 11 May 2021, the Global Foreign Exchange Committee (GFXC) announced that it was seeking industry feedback on draft guidance papers for the usage of ‘pre-hedging’ and ‘last look’ within foreign exchange markets. When finalised the guidance papers will not be part of the FX Global Code but should instead be read alongside it. The … Continue Reading

IOSCO report – thematic review on business continuity plans with respect to trading venues and intermediaries

On 6 May 2021, the Board of the International Organization of Securities Commissions (IOSCO) published a report on a thematic review that was conducted on the extent to which participating IOSCO member jurisdictions have implemented regulatory measures consistent with the two recommendations and the two standards set out in the 2015 IOSCO reports on business … Continue Reading

BCBS, CPMI and IOSCO survey clients and non-bank intermediaries on margin calls

On 5 May 2021, the Basel Committee on Banking Supervision, the Committee on Payments and Market Infrastructures and the International Organisation of Securities Commissions announced that they had issued a survey on the use of margin calls as part of an examination into liquidity shortfalls during the early stages of the COVID-19 pandemic. This work … Continue Reading

ROC consultative document – Harmonisation of critical OTC derivatives data elements – revised CDE Technical Guidance

On 5 May 2021, the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier (LEI) System published a consultative document, Harmonisation of critical OTC derivatives data elements – revised CDE Technical Guidance. The Technical Guidance for the Harmonisation of critical OTC derivative data elements (Technical Guidance) provides technical guidance on the definition, format and … Continue Reading

Global Securities Financing Data Collection and Aggregation: FAQs

On 12 April 2021, the Financial Stability Board (FSB) issued FAQs to promote a common approach on the national implementation of the SFT Data Standards. In November 2015 the FSB developed the data standards and processes for collecting and aggregating global data on securities financing transactions (SFTs) (the SFT Data Standards). These built on the … Continue Reading

GFXC publishes request for feedback on proposed changes to the Code and draft disclosure templates

On 8 April 2021, the Global Foreign Exchange Committee (GFXC) announced that as its review of the FX Global Code was nearing completion it was issuing a request for feedback on proposed changes to the Code and draft disclosure templates. The GFXC’s request for feedback covers proposals for updating the Code’s guidance in the following … Continue Reading

Commission adopts equivalence decision for US central counterparties

On 27 January 2021, the European Commission adopted an equivalence decision determining that the United States Securities and Exchange Commission (SEC) regime for US central counterparties (CCPs) is equivalent to EU rules. The equivalence decision complements the existing equivalence decision for US CCPs regarding the United States Commodity Futures Trading Commission, which was adopted in … Continue Reading

CFTC and ESMA sign enhanced MoU related to certain recognised CCPs

On 7 January 2021, the United States’ Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) announced that they had signed a new Memorandum of Understanding (MoU) regarding cooperation and exchange of information with respect to certain registered derivatives clearing organisations established in the United States that are central counterparties (CCPs) … Continue Reading
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