Featured Product

    ISDA Organizes ESG-Related Working Group, Calls for Standardization

    October 02, 2020

    ISDA published a statement emphasizing the importance of derivatives market in the transition to a sustainable economy. ISDA has convened the Sustainable Finance Working Group to discuss how ISDA can ensure better alignment with cash products and identify areas where the development of standard terms and definitions for environment, social, and governance (ESG) derivatives may be necessary. In the statement, ISDA espouses that, along with the development of ESG derivatives products, work will be needed to promote standardization across jurisdictions and market segments.

    ISDA has always been a strong proponent of standardization in documentation, market practices, operational processes, and wherever else it might make economic sense. This is just as important in a relatively new area like ESG as it is in more established markets. ISDA documentation and definitions are already being used to document ESG transactions. For example, swaps that are linked to a client’s performance against a set of sustainability targets have been documented under the 2006 ISDA Definitions. ISDA has also started to expand the range of ISDA templates for environmental trading to include renewable energy certificates. If needed in the future, ISDA will amend the existing ISDA templates for transactions with particular relevance to ESG and sustainable finance, such as emissions allowances, weather, and other commodities. Recently, ISDA also hosted a virtual conference on ESG and derivatives. In additionISDA had cooperated with the Center for European Policy Studies (CEPS) on a report, which was published in July 2020, on the role of derivatives in sustainable finance. Among other issues, the report discussed how supervisors are calling for an alignment of the prudential treatment of greens assets with the current credit risk framework. 

     

    Related Links

    Keywords: International, Banking, Securities, Derivatives, ESG, Sustainable Finance, Climate Change Risk, ISDA

    Related Articles
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481