The International Swaps and Derivatives Association, Inc (ISDA) is writing in response to the Financial Stability Oversight Council’s (the Council) advance notice of proposed rulemaking (ANPR) regarding the criteria and analytical framework that should be applied by the Council in designating financial market utilities (FMU) as systemically important under Sections 112(a)(2)(J) and 804(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA). 


Given the efforts being made to increase the use of central counterparties (CCPs), which will profoundly affect the role of the CCP in the broader financial infrastructure, effective CCP regulation, prudential supervision and oversight is critically important. If this is not achieved, CCPs will themselves become a major source of systemic risk. Thus, it is highly important that comprehensive analysis and consultation occurs on the design of the market structure and the implications for financial stability.

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