ISDA

With the ongoing war in Ukraine, conflict in the Middle East and elections in countries covering more than half the world’s population, #geopolitical #risk has been catapulted to the top of the risk management agenda. In the latest episode of The Swap podcast, ISDA CEO Scott O'Malia is joined by Brent McIntosh, chief legal officer and corporate secretary at Citi, to talk about how banks are managing the uncertain geopolitical outlook, as well as the evolving regulatory landscape. Listen here: https://lnkd.in/emuNa8Wb

Join ISDA and VERMEG for Banking & Insurance Software to learn more about how the Common Domain Model can be used to reduce onboarding time and resources associated with #collateral management. The webinar will take place on July 30 at 2pm BST/9am EDT and will feature ISDA’s Amy Caruso, head of collateral initiatives, Vernon Alden-Smith, director collateral initiatives, VERMEG for Banking & Insurance Software’s Wassel Dammak, head of collateral solutions strategy and Asma Belgaied Hassine, PhD, MBA, VERMEG for Banking & Insurance Software's head of COLLINE product management. Click here to register: https://lnkd.in/dQFJYRNM

This September! Don't miss ISDA's Masterclass on Derivatives Documentation being held in New York on Sept. 10-11 and in London on Sept. 26-27. Limited seats available - Register today to secure your spot! https://lnkd.in/eEXmnDR Led by a team of seasoned industry practitioners, this comprehensive 2-day Masterclass will equip you with a deep practical knowledge of the key elements of ISDA’s documentation, and will increase your confidence in negotiating these documents, as well as provide insight into the latest developments in market documentation. 20% Discount available for groups of 3 or more!

Agenda posted! Join us at #ISDA's 2024 Canada Conference, sponsored by Osler, Hoskin & Harcourt LLP, in Toronto on September 19th for an update on key legal and regulatory updates affecting global and Canadian markets, as well as ISDA initiatives. Register your group of 3 or more and save 20%. Lock in your registration today here: https://lnkd.in/gwf7jzaR

ISDA has published the results of its survey on #document negotiation, which shows the average time taken to negotiate key #derivatives documents hasn’t fallen since 2006, with some negotiations taking longer due to resource constraints, regulatory pressures and operational challenges. The ISDA Document Negotiation Survey, which is based on responses from 42 institutions, highlights delays in the negotiation of initial margin (IM) credit support annexes (CSAs) that have been caused by the requirement to segregate IM with a third-party custodian. Practical challenges in setting up custodial arrangements were cited by 25 respondents as a cause of delays in negotiating IM CSAs, account control agreements and eligible collateral schedules. The survey also asked participants about their use of #digital #automation tools, in order to identify progress in transitioning contract lifecycle management systems and processes to new technologies and automated data solutions. The ISDA Create contract negotiation platform can address key challenges such as negotiation times, #data capture and resource constraints. “The ISDA Document Negotiation Survey truly underscores the business case for greater digitization of derivatives documentation. Firms can realize significant #efficiencies and #savings by embracing digital platforms, which in turn enables them to onboard new business more quickly. By moving negotiations to ISDA Create, they can reduce negotiation times, capture contractual data and free up precious resources,” said Katherine Tew Darras, ISDA’s general counsel. Read the press release: https://lnkd.in/edvB7r3t   Read the survey: https://lnkd.in/e4GKQAie

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