United States

Topic: Clearing and settlement

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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

Supervisory Guidance on managing FX settlement risk and the Global FX Code

On 18 December 2020, there was published a letter from the chairs from the Basel Committee on Banking Supervision (BCBS) and the Committee on Payments and Market Infrastructures (CPMI) encouraging bank supervisors and banks and other participants in the FX market to follow the expectations set out in the 2013 BCBS Supervisory Guidance on managing … Continue Reading

FSB paper – Continuity of access to FMIs for firms in resolution: Informal summary of outreach and Q&A

On 9 December 2020, the Financial Stability Board (FSB) issued a paper setting out the answers to questions raised at a virtual outreach meeting which sought to provide stakeholders with further information concerning the questionnaire that was published in August for gathering information about continuity of access to financial market infrastructures (FMIs) for firms in … Continue Reading

OTC Derivatives Market Reforms – 2020 Note on Implementation Progress

On 3 December 2020, the Financial Stability Board (FSB) published a note regarding the progress made in implementing the over-the-counter (OTC) derivatives market reforms. The key message in the note is that overall implementation of the G20’s OTC derivatives reforms is well advanced, but there has been limited progress since October 2019 across Financial Stability … Continue Reading

FSB releases guidance on CCP financial resources for resolution and announces further work

On 16 November 2020, the Financial Stability Board (FSB) published final guidance on financial resources to support central counterparty (CCP) resolution and on the treatment of CCP equity in resolution. Ensuring the availability of adequate resources and tools for CCP resolution and understanding the potential for certain resources and tools to have an adverse effect … Continue Reading

BoE MoU with CFTC for supervision of cross-border clearing organisations

On 20 October 2020, there was published a memorandum of understanding (MoU) between the Bank of England (BoE) and the United States Commodity Futures Trading Commission (CFTC) regarding cooperation and the exchange of information in the supervision and oversight of clearing organisations that operate on a cross-border basis in both the United States and the … Continue Reading

FSB questionnaire on continuity of access to FMIs for firms in resolution

On 14 August 2020, the Financial Stability Board (FSB) published a common template for gathering information about continuity of access to financial market infrastructures (FMIs) for firms in resolution. The template takes the form of a questionnaire that all FMIs are encouraged to complete. The questionnaire covers: general information on the FMI and its legal … Continue Reading

ISDA board statement on adherence to the IBOR Fallback Protocol

On 29 July 2020, the ISDA issued a statement on adherence to the IBOR Fallback Protocol. Among other things the statement provides: “As part of its work, ISDA will soon publish the IBOR Fallback Protocol to facilitate inclusion of the new fallbacks in existing non-cleared IBOR derivatives transactions between counterparties that both adhere to the … Continue Reading

Joint statement by UK and US authorities on continuity of derivatives trading and clearing post-Brexit

On 25 February 2019, the UK and US authorities issued a joint statement on continuity of derivatives trading and clearing post Brexit. The joint statement covers the following issues: Continued supervisory cooperation. The Bank of England (BoE) and the Commodity Futures Trading Commission (CFTC) are in the process of updating, in connection with the UK’s … Continue Reading
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