The International Swaps and Derivatives Association (ISDA) has published a new edition of IQ reviewing areas of the post-crisis derivatives regulatory framework where further recalibration may be warranted, alongside the shift to central clearing, margining of non-cleared trades and higher capital requirements. ISDA highlights the completion of Basel III in key jurisdictions, pointing to a March 19 US proposal that it views as a significant improvement while noting that additional adjustments may still be needed to deliver a risk-sensitive capital framework. In the UK, it notes the January finalisation of Basel 3.1 for implementation at the start of 2027, and the Prudential Regulation Authority’s one-year delay to the internal models approach for market risk to allow more time to refine calibration. The publication also references an ISDA whitepaper recommending prudential framework changes to better reflect the secured, short-dated and collateralised nature of securities financing transaction exposures, and it flags ongoing problems with trade reporting data quality while pointing to recent EU and UK consultations aimed at simplifying and reducing reporting burdens, alongside ISDA’s Digital Regulatory Reporting initiative.
ISDA 2026-04-07
International Swaps and Derivatives Association publishes IQ highlighting recalibration needs in Basel III, SFT prudential rules and trade reporting
The International Swaps and Derivatives Association has published a new edition of IQ reviewing where the post-crisis derivatives regulatory framework may require recalibration, including in light of central clearing, non-cleared margining and higher capital requirements. It highlights recent Basel III implementation developments in the United States and United Kingdom, recommends prudential changes for securities financing transaction exposures, and flags persistent trade reporting data quality issues amid EU and UK efforts to simplify reporting and ISDA’s Digital Regulatory Reporting initiative.