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ISDA CEO Warns of Potential Risks Relating to DTOs Post-Brexit

ISDA CEO Scott O'Malia highlighted potential issues affecting derivatives trading obligations following Brexit. In the absence of an equivalence determination, he said, European Economic Area (EEA) counterparties risk losing access to an important source of liquidity that may result in fragmentation. He also warned that there were trading venue and potential conflict of laws issues.

He encouraged (i) coordination between UK and EU regulators and (ii) mutual recognition of trading venues.

ISDA previously urged regulators to issue equivalence determinations. Recently, Andrew Bailey of the UK Financial Conduct Authority made similar recommendations.

Primary Sources

  1. ISDA Comments, Scott O'Malia, The Case for Coordination

Tags

Individuals
Scott O'Malia
Regulated Activities
Business Continuity Regulatory Oversight
Sub-Activity
Regulatory Co-operation
Regulated Entities
Regulatory Agencies Markets
Sub-Entity
Clearing Organizations
Regulated Products
Swaps / SBS
Body of Law
Banking Law
Jurisdiction
Global , European Union or Non-U.S. Country
Impacted Foreign Jurisdiction
European Union
Organization
Trade / Industry Associations
Sub-Author
ISDA