August 4, 2020

FIA Highlights Pandemic Response Efforts

In a "Midyear 2020 Advocacy Report," FIA highlighted efforts to address the COVID-19 related economic and operational issues. FIA noted its (i) collaboration with regulators to ensure that work-from-home policies did not impede the marketplace, (ii) aid to FIA members in obtaining temporary relief in the U.S., Europe and Asia, and (iii) strong support for keeping markets open, including opposition to measures "that would be counter-productive to market liquidity and integrity."

Further, FIA highlighted the following activities:

  • COVID-19 Resources. FIA coordinated a "one-stop industry resource" that gave market participants up-to-date information on the pandemic from regulators, exchanges and central counterparties. FIA also created and disseminated, in response to industry requests, a list of key contacts to aid firms in resolving trade conciliation and cash adjustment difficulties.

  • Clearing and Trading. FIA monitored the regulatory oversight of clearing. FIA also advocated for capping clearing house liability and advancing EMIR Reporting Best Practices.

  • Cross Border. FIA met with numerous EU regulators to emphasize the "financial stability, commercial and operational" implications for derivatives clearing should Brexit result in the creation of duplicative or conflicting rules.

  • Commodities. FIA supported finalizing position limits in the U.S. (see previous coverage) and updating position limits in the EU (see here).

  • Sustainability. FIA identified climate-related market risks and recommended enhancements to sustainable finance development (see comment letters addressed to the CFTC Market Risk Advisory Committee and the European Commission, here and here).

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