ISDA® Announces Membership and Charter of the Industry Clearing Committee | Practical Law

ISDA® Announces Membership and Charter of the Industry Clearing Committee | Practical Law

ISDA announced the membership and charter of the Industry Clearing Committee (ICC), which consists of a broad cross-section of OTC derivatives industry market participants.

ISDA® Announces Membership and Charter of the Industry Clearing Committee

Practical Law Legal Update 6-517-2173 (Approx. 3 pages)

ISDA® Announces Membership and Charter of the Industry Clearing Committee

by PLC Finance
Published on 11 Jan 2012 • USA (National/Federal)
ISDA announced the membership and charter of the Industry Clearing Committee (ICC), which consists of a broad cross-section of OTC derivatives industry market participants.
On January 11, 2012, ISDA® announced the membership and charter of the Industry Clearing Committee (ICC). The ICC was formed by ISDA in June 2011 to address industry concerns with respect to the clearing of swaps and derivatives. The composition of the ICC includes a wide cross section of sell-side and buy-side market participants, swap clearinghouses and broker-dealers, often referred to by regulators as futures commission merchants (FCMs). Creation of the ICC is the latest step taken by ISDA to remain at the forefront of swaps and derivatives matters in the context of the global move toward clearing of over-the-counter (OTC) derivatives.
Specifically, according to ISDA, the ICC was created to:
  • Assist in coordinating industry efforts to reach optimal levels of swap clearing.
  • Address any obstacles to achieving those optimal levels.
  • Provide recommendations on swap clearing practices across multiple OTC derivative asset classes.
The composition of the ICC includes a wide cross section of sell-side and buy-side market participants, swap clearinghouses and broker-dealers, including Barclays Capital, Credit Suisse, Deutsche Bank AG, Goldman Sachs, HSBC and JPMorgan Chase, as well as ISDA and the industry groups Futures Industry Association (FIA) and Securities Industry and Financial Markets Association (SIFMA).
The ICC is divided into three primary groups:
  • The Plenary Group. This is the decision-making group of the ICC, which is responsible for making all industry recommendations relating to the ICC's work.
  • The Organizational Group. This group, a subset of the Plenary Group, is the administrative and coordinating group of the ICC. It is comprised of four sell-side, four buy-side and four CCP (clearinghouse) participants.
  • The Working Groups. These groups are formed on an ad-hoc basis to deal with specific issues and tasks.
For more information on ISDA, see ISDA Documents: Overview (US): The International Swaps and Derivatives Association (ISDA).
"ISDA" is a registered trademark of the International Swaps and Derivatives Association, Inc. (ISDA). ISDA is not a sponsor of Practical Law and had no part in the development of this resource.