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 SEC “Safeguarding Proposal” looks dangerous

ISDA is in the process of responding to a request for comments on the SEC’s proposed “Safeguarding Rule for Investment Advisers (the “Safeguarding Rule”). The regulator seeks to amend the 60 years old Rule 206(4)-2 of the Advisers Act 1940, redesignating it as a new rule 223-1 under the same Act (the “Custody Rule”). Aimed […]

USD zombie LIBOR lives on

The FCA has announced that the synthetic 1-, 3- and 6 month USD LIBOR will be extended until 30 September 2024. Previously scheduled to end on 30 June 2023, the FCA refers to the extension as a “short period”. The synthetic LIBOR tenors will be available to all market users for rate-setting of legacy contracts, […]

Pension clearing exemption- the UK takes the road less travelled

To the surprise of very few, HM Treasury (HMT) yesterday stated its intention to introduce a statutory instrument extending the exemption for pension funds from the clearing obligation by a period of two years and extending the temporary intragroup exemption regime by a further three years. The statutory instrument will amend Article 89 (1) of UK […]

IM Legacy Labyrinth

ISDA has identified potential differences in global Regulators’ approach to the treatment of legacy trades as firms move in and out of the initial margin regime following the AANA calculation. The IM rules are now fully phased-in, albeit with a large proportion of counterparties in the Threshold Monitoring waiting room. IM therefore becomes a BAU […]

Decimated LIBOR zombies stagger on

On the 23 November 2022, the FCA announced a significant extension for 3m GBP synthetic LIBOR and proposed the publication of synthetic USD LIBOR settings until 30 September 2024.  The Regulator will employ its powers under the UK Benchmarks Regulation to compel ICE Benchmark Administration to publish 3m synthetic LIBOR until 31 March 2024. The […]

FCA consults on final LIBOR funeral dates

Yesterday, The FCA published a promised consultation on the winding down of synthetic GBP and USD LIBOR. 31 December 2021 famously marked the funeral for 24 LIBOR settings. However, in order to allow more time for “tough legacy” contracts to transition to the replacement RFRs, the FCA continued to compel publication of synthetic LIBOR rates […]

SIMM falls short

On 28 June 2022, the UK’s Prudential Regulation Authority (PRA) published a letter to the Chief Risk Officers of banks operating under its jurisdiction. The letter details its review of the market’s use of ISDA’s Standard Initial Margin Model (SIMM); the review was intended to assess the SIMM’s performance during recent periods of market stress […]

Buy-ins binned

We have posted extensively on the multiple delays to the CSDR’s Settlement Discipline Regime(SDR). By way of reminder the SDR was initially to comprise three core elements: Enhanced trade reporting to facilitate trade settlement, Incentivising timely settlement by the imposition of cash penalties, and A Mandatory buy-in regime for failed trades. Reporting and cash penalties […]


The rapidly developing situation in Ukraine has re-focused attention on the use of targeted sanctions as a disincentive or response to national aggression. Sanctions have traditionally acted as a blanket ban on any trade with those countries or entities perceived to be the most egregious.  Over the last decade, sanctions have become more focused, nuanced […]

(What remains of) Settlement Discipline begins today

1 February 2022 marks the coming into force of the CSDR’s Settlement Discipline Regime (SDR). As originally envisaged the SDR aims to harmonise the authorisation and supervision of CSDs across the EEA, mandating rules for CSD organisation and conduct.  and uniform settlement requirements. The seemingly bland intention to promote safe and efficient settlement proved controversial […]

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