FIA and ISDA have jointly issued a letter of support to US Rep. Emmanuel Cleaver (D-Mo.) for his legislative efforts to expand access to deposit accounts offered by the Federal Reserve for clearinghouses regulated by the US Commodity Futures Trading Commission.
The letter notes that Federal Reserve deposit accounts are "the safest and most liquid place to hold US dollar client margin." FIA and ISDA also write: "During times of stress and increased market volatility, access to deposit accounts for all CCPs will improve liquidity across the cleared derivatives ecosystem and reduce the interconnectedness of the central counterparties and banks. It will also protect customers and end-users using the derivatives markets to hedge risk.”
