ICYMI ISDA AGM 2019 Round Up

+1
5 MINS

Poll outcomes

ISDA ran various polls with the attendees, here's a summary of voting taken from the ISDA Twitter feed https://twitter.com/ISDA 

  • 38% say they are working to identify collateral management challenges
  • 36% say they see uncertainty on implementing FRTB for Asia (but that probably applies globally)
  • 45% say they are digitising legal documents (I assume beyond scanning PDFs, but turning them into true digital data)
  • 37% say they will be ready by the end of 2019 for an ISDA protocol on IBOR fallbacks (many are already ready)
  • 38% think investment in collateral management will bring the biggest technological benefit
  • 39% say the complexity of the OTC market infrastructure is a barrier to processing
  • 66% say their investment priority is to increase efficiency and reduce costs
  • 78% say we will have robot lawyers in 10 years time. Were any of the voters lawyers?

Announcements

That's it until next year.

Share

CONTRIBUTOR

Bill Hodgson The OTC Space
To publish articles, news, opinions and press releases use the Contribute button (top left of the page) and send them in. Contact me for development of articles, webinars, lead generation, videos and events. The OTC Space seeks to publish practical insights into the capital markets, by practitioners who speak from experience.
Full Profile
Category
Trade Associations

Related articles

European Capital Markets in the Digital Age
16 Sep 2020 - Bill Hodgson

European Capital Markets in the Digital Age

AFME outlines the regulatory framework needed to support banks as they adopt new technologies such as crypto-assets, artificial intelligence and cloud computing, harness the value from data, and address the challenges of cybersecurity and operational resilience. 

+0
1 MIN
FIX EMEA Conference Goes Virtual
21 Aug 2020 - Deputy Editor

FIX EMEA Conference Goes Virtual

The FIX EMEA trading conference takes place virtually on 18th September.

It will look at the most pressing issues facing the institutional trading community and provide a neutral platform for buy-side, sell-side, exchanges, vendors and regulators to share their ideas on how the community can continue to collaborate.

Designed to appeal to all asset classes, the agenda will maintain a great balance of topics across multiple asset classes.

Presentations and panels will look at -

  • Global Financial Policy
  • Cross Asset Vs Multi-Asset Trading
  • The impact of COVID-19
  • The impact of Regulation and Technology in Fixed Income
  • The impact of Regulation and Technology in FX
  • Implementing a Consolidated Tape for Equities and Fixed Income
  • ESG
  • Data Standards
  • FIX NextGen

 

Free for FIX Members - see full agenda - https://www.fixtrading.org/emea2020agenda/

 

 

+0
2 MINS
ISDA Launches Risk-free Rate Adoption Indicator
29 Jul 2020 - Bill Hodgson

ISDA Launches Risk-free Rate Adoption Indicator

ISDA has launched a new indicator to monitor the adoption of alternative risk-free rates (RFRs) in derivatives trading.

The indicator, developed in conjunction with Clarus Financial Technology, will provide a monthly snapshot of RFR trading activity in interest rate derivatives (IRD) markets, based on global cleared over-the-counter and exchange-traded derivatives data from seven central counterparties spanning six currencies. The indicator is intended to help derivatives market participants keep tabs on progress to shift to RFRs ahead of the end of 2021, when the UK Financial Conduct Authority will no longer compel or persuade banks to make LIBOR submissions.

“As the transition to RFRs continues to pick up pace, we wanted to develop a single, transparent data point that participants could use to track progress across multiple IRD products and currencies. These indicators will provide important clarity on what’s been achieved and the work that remains to be done ahead of the end of 2021,” said Scott O’Malia, ISDA’s Chief Executive.

The RFR Adoption Indicator tracks the percentage of cleared IRD trading activity that references RFRs, measured by DV01. DV01 is a gauge of risk that represents the valuation change in a derivative contract resulting from a parallel 1 basis point shift in the swaps curve. The RFR Adoption Indicator was at 4.7% in June 2020.

ISDA and Clarus have also developed a number of sub-indicators that provide additional granularity based on currencies, tenor and over-the-counter versus exchange-traded IRD, as well as notional amount traded.

Based on those indicators, 24.4% of sterling-denominated IRD DV01 was referenced to RFRs in June, the highest proportion of the six currencies tracked. Total DV01 of RFR-linked IRD across all six currencies was $1.3 billion over the same period.

The first monthly report is available here. The ISDA-Clarus RFR Adoption Indicator will be available each month on ISDA’s website.

A whitepaper on the methodology is available here.

+1
2 MINS