ISDA has made a series of organisational changes that reflect a shift in focus towards the implementation of new swaps requirements as regulators reach the end of a five-year rule-writing process intended to bring transparency to the US$691trn over-the-counter derivatives market.
The latest overhaul includes the creation of new positions in public policy and legal and regulatory practice and an enhanced focus on the pending requirement for swaps counterparties to exchange collateral as margin on their uncleared swaps positions and aim to support effective implementation of new rules in a harmonised manner across jurisdictions.
The changes follow a hard-fought battle between the industry and global regulators as OTC swaps were pushed into central clearing and brought onto electronic platforms in the wake of the financial crisis.
“With the development of new regulation largely complete, it’s vital that the various national rules converge and regulators in one jurisdiction are willing and able to recognise and defer to equivalent regulations in another,” said Scott O’Malia, chief executive of ISDA in a written statement.
“The organisational changes will enable ISDA to effectively respond to cross-border issues – for instance, by leveraging our global footprint to help provide data and analysis to regulators.”
The industry body has appointed Steven Kennedy as global head of public policy, a newly created role intended to reflect the next phase of regulatory reform and ensure a co-ordinated global industry response on key regulatory issues. Based in New York and reporting to O’Malia, Kennedy will oversee public policy teams in Brussels, Hong Kong, London, New York, Singapore, Tokyo and Washington.
Kennedy has held a variety of positions since joining ISDA in 2011, most recently as head of strategy research and communications. In his new role, he will continue to oversee the communications and research teams.
The industry body has also expanded its technical capabilities, establishing a new regulatory and legal practice group within the office of the general counsel, which will provide legal advice to global policy teams. The Washington-based group will be led by Bella Rozenberg, who joins from the CFTC where she worked in the office of the general counsel and division of market oversight. She will report to David Geen, ISDA’s general counsel.
With regulatory efforts focused on margin for uncleared swaps, which is due to be implemented by the end of this year, ISDA has appointed Mary Johannes, head of US public policy, to lead its non-cleared margin implementation initiative. She will continue work on an industry standard initial margin model and develop necessary documentation, infrastructure and market practices to facilitate the exchange of collateral.
Johannes replaces Athanassios Diplas, senior advisor to the ISDA board, who has left the organisation to pursue other opportunities.
Christopher Young has been promoted to acting head of US public policy to fill in for Johannes as she focuses on her new role.
ISDA recently installed a new senior management team, hiring former CFTC commissioner O’Malia took as CEO of the industry body last summer, while Societe Generale’s head of regulatory affairs, Eric Litvack, replaced Stephen O’Connor as chairman at the start of this year.