European Swaps Regulation - Comment Letter - International Swaps and Derivatives Association - October 1, 2009

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ISDA Response to CESR/09-618 on Classification and identification of OTC derivative instruments for the purpose of the exchange of transaction reports amongst CESR members
October 1, 2009

From the comment letter:

"ISDA notes that the European Commission is currently engaged in a number of reviews which address the issue of regulatory reporting of OTC derivatives, namely:

  • The review on Derivatives markets (see EC Communication of 3 July 2009 on ‘Ensuring Efficient, Safe and Sound Derivatives Markets’);
  • The EC review of the Market Abuse Directive; and
  • The EC review of the MIFID Directive."

"ISDA cautions that a move by CESR, under this initiative, to expand the scope of transaction reporting requirements, risks imposing requirements implying significant expenditure by firms (on IT infrastructure, training etc), in a way which prejudges the outcome of the above-mentioned reviews. If these reviews determine that the most appropriate method through which market participants should submit regulatory reports to regulators is one that takes a significantly different approach to that adopted by CESR, this investment will have been both costly and unnecessary. ISDA believes that CESR should consider delaying any decision until these reviews have run their course."

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