This public consultation is intended to initiate a conversation with the global Exchange-traded derivatives industry regarding Average Pricing on central counterparties (CCPs), proposing that all global CCPs adopt standardized Average Pricing functionality.
Date
01 Jun 2023
FIA Operations Americas Division (“Division”) appreciates the opportunity to comment on the Derivatves Market Institute for Standards Consultation Paper: Standard Regarding Average Pricing. The Division has been supportive of standardization around average pricing for many years and even conducted a study in 2005 to document how firms handle average pricing and the feasibility of developing an industry standard that could be used globally. The Division fully supports the goal of achieving consistency across clearinghouses, which will go a long way in alleviating client confusion and help to ensure their transactions are fairly and equitably distributed among their clients. The Division, however, recognizes that full adoption of an average pricing standard is subject to regulatory considerations in each jurisdiction.
CONSULTATION QUESTIONS DMIST – LCH Response
This consultation response covers two entities at Nasdaq Inc.; Nasdaq Clearing AB (a CCP) & Nasdaq Technology (a global provider of CCP technology). Nasdaq welcomes the DMIST proposed industry standard for Average Pricing and recognizes the need for greater standardization across central counterparties (CCPs) operating in exchange- traded derivatives.