The International Swaps and Derivatives Association (ISDA) published a derivatiViews commentary by Chief Executive Officer Scott O’Malia setting out the association’s priorities to modernize over-the-counter derivatives markets in 2026 and beyond, spanning capital rules, US Treasury clearing, trade reporting and tokenization-related collateral management. On capital, ISDA expects US regulators to publish a revised Basel III endgame package in early 2026 and plans to analyze proposals with members, while also preparing a response to the European Commission’s consultation on targeted changes to the Fundamental Review of the Trading Book. For US Treasury clearing, ISDA highlighted implementation pressure ahead of the first mandatory clearing requirement for cash transactions at end-2026, welcomed central counterparties’ development of a client portfolio margining solution and the Commodity Futures Trading Commission’s proposal to approve it, and urged US prudential regulators to amend rules to recognize netting benefits across products under the standardized approach for counterparty credit risk. On reporting, ISDA pointed to a fragmented framework and said it will engage with the European Securities and Markets Authority’s completed consultation and the UK Financial Conduct Authority’s ongoing consultation, alongside further development of its Digital Regulatory Reporting initiative. ISDA also flagged tokenization as a route to expand variation margin collateral eligibility to a wider pool of assets, including money market funds, and said work is underway on legal and regulatory clarity and interoperability supported by common data standards. The European Commission consultation referenced in the commentary closes on 6 January 2026, while the US Treasury cash clearing mandate cited is due to begin at end-2026 and the revised US Basel III endgame proposals are expected in early 2026.
ISDA 2025-12-17
International Swaps and Derivatives Association outlines 2026 priorities for Basel III endgame, US Treasury clearing, reporting and tokenized collateral
The International Swaps and Derivatives Association (ISDA) outlined its 2026 priorities for modernizing over-the-counter derivatives markets, focusing on capital rules, US Treasury clearing, trade reporting, and tokenization-related collateral management. Key initiatives include analyzing US Basel III proposals, responding to the European Commission's trading book consultation, addressing US Treasury clearing pressures, engaging with regulatory reporting consultations, and exploring tokenization to expand collateral eligibility.