ISDA slams location policy, demands legal certainty
The International Swaps and Derivatives Association (ISDA) on Monday spoke up against a potential location policy for central counterparties (CCPs) after Brexit, saying that constraining euro derivatives trades' clearing to the EU 27 would increase price volatility, execution costs and systemic risk.
The industry trade body also slammed the European Union over a potential breach of commitments to G20 principles on derivatives market reform, which included a promise to prevent “fragmentation of markets, protectionism, and regulatory arbitrage”.
“An EU CCP location policy would run contrary to the deference principle and
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