ISDA Marks Progress and Continuing Challenges in 5-Year Review of Dodd-Frank Act

ISDA published "The Dodd-Frank Act: Five Years On," a brief analyzing the Act's impact on the derivatives markets over the past five years. ISDA noted progress and outstanding challenges.

ISDA highlighted a number of positive changes in the derivatives markets that spurred "improvements in transparency and [a] reduction in counterparty risk . . ." Among the challenges to be resolved, ISDA highlighted the need for regulatory regimes to be consistent and harmonized across borders, and recommended that regulators: (i) work to harmonize rule sets as far as possible to achieve cross-border harmonization; (ii) standardize product and transaction identifiers; (iii) make amendments to the U.S. SEF rules; (iv) stress test the resiliency of central counterparties; (v) finalize national-level non-cleared derivatives margin rules; and (vi) globalize capital rules in order to prevent competitive disadvantages.

See: ISDA Briefing Notes:"Dodd-Frank Five Years On: Significant Progress and Outstanding Challenges"; ISDA Press Release.See also: ISDA Audio Webinar: "Dodd-Frank Five years On"