TO SUPPORT open, transparent and competitive markets
TO PROTECT and enhance the integrity of the financial system
TO PROMOTE high standards of professional conduct
In 2016, FIA continued its advocacy work across Asia, Europe and North America.
Throughout the year, FIA focused on the impact of the proposed Basel III leverage ratio on clearing and – ultimately – end-users. Other advocacy priorities included the European Union's Markets in Financial Instruments Directive (MiFID II), the regulatory uncertainties surrounding the U.K.'s vote in June to exit the European Union and a range of cross-border oversight issues, such as third-party equivalence of clearinghouses.
FIA also worked with a wide cross-section of industry leaders and policy makers in Asia on issues related to global trading and clearing. We continued our advocacy with a number of Asian clearinghouses to improve risk management standards.
CAPITAL STANDARDS THAT WORK
FIA undertook substantial work throughout the year to convey the industry's concerns regarding customer margin treatment within the Basel capital requirements, following the publication of a proposal by the Basel Committee in April to amend the leverage ratio. The Basel Committee standards are a framework for bank capital requirements being adopted by regulators around the world. Of particular concern is the proposed treatment of customer initial margin under the leverage ratio.
A FOCUS ON EUROPE
One of our top priorities in 2016 was to address the issues raised by the implementation of the European Union's Markets in Financial Instruments Directive (MiFID II), which is scheduled to take effect in January 2018. Throughout the year, FIA submitted several responses and comment letters regarding several aspects of this sweeping European financial framework.
THE SAFETY AND SOUNDNESS OF CLEARINGHOUSES
The resiliency and recovery of clearinghouses continues to be a critical focus for FIA. During 2016, FIA held a number of meetings with clearinghouse representatives in the U.S., Europe, China, India and Japan to discuss long outstanding advocacy issues.
BREXIT: THE REGULATORY LANDSCAPE AHEAD
Many uncertainties lie ahead for the industry after the U.K. voted in June to leave the European Union. While many of the details and timing regarding Brexit remain unclear, FIA has been working with industry leaders and regulators to emphasize the need to avoid fragmentation and minimize disruption.
FIA served as the industry's voice on key global regulatory issues.
Since the 2008 financial crisis, much of the focus in Washington, Europe and Asia has been on implementing the regulatory reforms recommended by G20 leaders such as clearing of over-the-counter swaps and other derivatives, expanded reporting requirements and a new capital requirement framework.
Throughout the year, FIA testified before the U.S. Congress, met and appeared in official meetings of the European Commission, participated in several regulatory roundtable discussions and held numerous meetings and discussions with global policymakers.
Much of FIA's work for the industry is centered on promoting healthy, safe and competitive markets. Among some of those efforts, FIA participated with industry and government groups on business continuity and disaster recovery as well as cybersecurity exercises.
FIA continued to promote financial technology and innovation in the industry through our events, webinars, training, documentation and other resources. This effort is critical, particularly as our industry faces higher regulatory costs. Our divisions and affiliates also worked to help promote competitive and efficient markets.
FIA's Worldwide Disaster Preparedness Exercise
FIA continued to develop and produce valuable resources and events that give our members market intelligence on important legislative and regulatory developments, industry shaping trends and trading data for futures and cleared swaps. In 2016, FIA began development on new online compliance training modules, organized 23 webinars, introduced our interactive SEF Tracker, hosted over 25 regional events and held six major conferences.
A look back at FIA’s conferences, events and webinars in 2016