The International Swaps and Derivatives Association, Inc. (ISDA) today participated in a meeting convened by EU Financial Services Commissioner, Charlie McCreevy, alongside a number of financial industry trade associations. ISDA Chairman, Eraj Shirvani, co-head of credit sales and trading at Credit Suisse, offered the following statement on the meeting.
"The European Commission has convened an industry working group to review operational matters in the wholesale derivatives industry. Today’s discussion was open and constructive in tone. Participants are reviewing progress in operational efficiencies and will seek to examine the exact nature and extent of challenges the markets are facing in ensuring operational and systemic security, as well as where further progress might be needed. The first priority of this working group is planning for a centralized clearing counterparty, with a medium term goal of reviewing market transparency.
ISDA is working with a coalition of trade associations on these issues. We look forward to working with the Commission to meet any goals that will continue to improve operational efficiency and promote legal certainty. To that end, we will continue to advocate an EU Directive on netting to reinforce the bilateral close-out netting regime in Europe.”