On 8 June, the UN SSE was invited to the Futures Industry Association’s 2022 International Derivatives Expo (IDX) to join a “fireside chat” on sustainable finance and the role of derivatives markets. Anthony Miller, Coordinator of the United Nations Sustainable Stock Exchanges initiative, and Christy Goldsmith Romero, Commissioner for the United States Commodity Futures Trading Commission, discussed a number of sustainability themes, in particular climate action, with the CEO of the FIA, Walt Lukken.
The chat explored the important role national regulators can play in promoting sustainable finance through the standardization of taxonomy and metrics, coordination of regulations with other jurisdictions and strong enforcement against greenwashing and fraud. The discussions also emphasized the importance of building capacity and the need to create vehicles for sustainable investments between developed and developing markets.
“Derivatives markets are actively integrating sustainability factors into contracts and developing new products and services exclusively designed to address the climate crisis,” said Anthony Miller. “It is a promising and rapidly developing area and we welcome the opportunity to engage with derivatives markets and their regulators to further promote sustainable finance across all asset classes.”
FIA is a global trade organization for the futures, options and centrally cleared derivatives markets. FIA’s membership includes global exchanges, clearinghouses, clearing member banks, trading firms and commodities specialists from some 50 countries as well as technology vendors, lawyers and other professionals serving the industry. From 6-8 June 2022, FIA gathered together the cleared derivatives community in London for IDX. Sessions covered the European regulatory environment, the changing dynamics in market structure, the impact of macro and geopolitical developments as well as sustainable finance, compliance, crypto and margin.
What role do derivatives exchanges play in reaching a more sustainable economy?
On the topic of how derivatives exchanges can promote sustainable development, the SSE, along the World Federation of Exchanges, published a report detailing the things derivatives exchanges are already doing in relation to sustainability, and highlight ways in which these exchanges can actively support the transition to more sustainable development pathways. Download the full report: How Derivatives Exchanges can Promote Sustainable Development – An Action Menu
In October 2021, the SSE launched its new Derivatives Network, marking the first time that derivatives exchanges were able to join the SSE as members. The group now counts 13 members from all over the globe including some of the largest derivatives exchanges on the planet. The establishment of this network recognizes the importance of aligning all aspects of financial markets with more sustainable outcomes and the next step in the SSE’s evolution.
To know more about the SSE derivatives network, visit: https://sseinitiative.org/derivativesexchanges
