ISLA: All about ISLA, all about you
20 June 2025 Madrid
Image: Steven Lafferty
The 鈥業SLA Global Advocacy, Regulatory & Legal Highlights鈥� panel saw Alistair Griffiths, director of business development at the International 兔子先生Lending Association (ISLA), moderate discussions surrounding the association鈥檚 strategic priorities across regions and policy areas.
He was joined by other members of the ISLA team, including Tina Baker, head of legal services and ISLA Connects lead, Adrian Dale, head of Regulation and Markets, Farrah Mahmood, director of Regulatory Affairs, and ISLA Americas CEO Fran Garritt.
The panel opened with an assessment of how global political dynamics are shaping the regulatory climate. 鈥淣ow more than ever鈥�, noted one speaker, 鈥渞egulation is being impacted by geopolitics鈥�. While worldwide elections in 2024 created uncertainty, this has now been replaced by an observable drift toward nationalism and protectionism, the panel suggested. This in turn, they highlighted, leads to a more complex regulatory landscape, which means higher costs for members.
Turning to legal developments, the panel highlighted progress in Saudi Arabia, where ISLA and the International Capital Markets Association (ICMA) have responded to a proposal from the Capital Market Authority (CMA). While netting legislation has already been implemented in some parts of the region, panellists suggested Saudi Arabia is likely to deliver formal netting rules by the end of the year 鈥� with Kuwait seemingly monitoring developments.
ISLA is also working to build out country-specific securities lending guides for Abu Dhabi and Dubai. The association has prioritised early dialogue with regulators in these markets, in contrast to the more top down approach they had in Saudi Arabia. Establishing long-term relationships with regional authorities, including ministries of finance, is key to ISLA鈥檚 broader Middle East strategy, one speaker suggested.
Market developments in Latin America are also of significant focus to ISLA. A panellist highlighted that while Brazil and Mexico continue to grapple with supply-side challenges, countries like Chile, Peru, and Colombia face more demand-side constraints. Argentina, meanwhile, suffers from both, due in part to the dominant role of a single pension fund.
Shariah compliance is considered one of the next major legal priorities for ISLA. With up to 80 per cent of funds in some regions subject to Islamic finance restrictions, the panel suggested developing a universally acceptable compliance framework will be essential, not just in the MIddle East, but also other regions where Shariah compliance is a factor. The ambition, they say, is to create an Islamic finance structure flexible enough to operate across multiple jurisdictions.
The shift to T+1 was, of course, another topic for discussion. European market fragmentation remains a core concern, and the panel stressed the importance of ensuring that the move to shorter settlement windows does not disrupt overall market functioning. Linking this with best practices, one member noted: 鈥淭he big hitter in the whole thing is the T+1 conversation.鈥�
From a regulatory perspective, the panel discussed the US 兔子先生and Exchange Commission鈥檚 (SEC鈥檚) 10c-1a rule, which is currently scheduled for implementation in January 2026. While efforts are under way to delay this to September, a court case brought by the Hedge Fund Association could further impact timelines. A resolution is now expected no earlier than Q3 2025.
Touching on a panel topic from the 2024 ISLA conference 鈥� Basel Endgame 鈥� one panellist was asked if, a year on, we are in fact any closer. The succinct and unambiguous answer? 鈥淣o.鈥�
Digital transformation is yet another area dominating much of the industry. ISLA continues to invest in digital best practices and is coordinating with global associations to ensure the collateral management space is fully addressed. One of the biggest goals is harmonising standards across jurisdictions, with support for a Common Domain Model (CDM).
The panel noted that openness from regulators, particularly an 鈥渙pen door policy鈥� the association has for discussions with the UK鈥檚 Financial Conduct Authority (FCA), provides an opportunity to influence frameworks at an early stage.
A recently developed digital assets annex, meanwhile, one speaker jokingly suggested, was described by one stakeholder as 鈥渁 gift from heaven鈥� 鈥� a reflection of the strong appetite for practical tools that can bridge emerging technology and operational requirements.
He was joined by other members of the ISLA team, including Tina Baker, head of legal services and ISLA Connects lead, Adrian Dale, head of Regulation and Markets, Farrah Mahmood, director of Regulatory Affairs, and ISLA Americas CEO Fran Garritt.
The panel opened with an assessment of how global political dynamics are shaping the regulatory climate. 鈥淣ow more than ever鈥�, noted one speaker, 鈥渞egulation is being impacted by geopolitics鈥�. While worldwide elections in 2024 created uncertainty, this has now been replaced by an observable drift toward nationalism and protectionism, the panel suggested. This in turn, they highlighted, leads to a more complex regulatory landscape, which means higher costs for members.
Turning to legal developments, the panel highlighted progress in Saudi Arabia, where ISLA and the International Capital Markets Association (ICMA) have responded to a proposal from the Capital Market Authority (CMA). While netting legislation has already been implemented in some parts of the region, panellists suggested Saudi Arabia is likely to deliver formal netting rules by the end of the year 鈥� with Kuwait seemingly monitoring developments.
ISLA is also working to build out country-specific securities lending guides for Abu Dhabi and Dubai. The association has prioritised early dialogue with regulators in these markets, in contrast to the more top down approach they had in Saudi Arabia. Establishing long-term relationships with regional authorities, including ministries of finance, is key to ISLA鈥檚 broader Middle East strategy, one speaker suggested.
Market developments in Latin America are also of significant focus to ISLA. A panellist highlighted that while Brazil and Mexico continue to grapple with supply-side challenges, countries like Chile, Peru, and Colombia face more demand-side constraints. Argentina, meanwhile, suffers from both, due in part to the dominant role of a single pension fund.
Shariah compliance is considered one of the next major legal priorities for ISLA. With up to 80 per cent of funds in some regions subject to Islamic finance restrictions, the panel suggested developing a universally acceptable compliance framework will be essential, not just in the MIddle East, but also other regions where Shariah compliance is a factor. The ambition, they say, is to create an Islamic finance structure flexible enough to operate across multiple jurisdictions.
The shift to T+1 was, of course, another topic for discussion. European market fragmentation remains a core concern, and the panel stressed the importance of ensuring that the move to shorter settlement windows does not disrupt overall market functioning. Linking this with best practices, one member noted: 鈥淭he big hitter in the whole thing is the T+1 conversation.鈥�
From a regulatory perspective, the panel discussed the US 兔子先生and Exchange Commission鈥檚 (SEC鈥檚) 10c-1a rule, which is currently scheduled for implementation in January 2026. While efforts are under way to delay this to September, a court case brought by the Hedge Fund Association could further impact timelines. A resolution is now expected no earlier than Q3 2025.
Touching on a panel topic from the 2024 ISLA conference 鈥� Basel Endgame 鈥� one panellist was asked if, a year on, we are in fact any closer. The succinct and unambiguous answer? 鈥淣o.鈥�
Digital transformation is yet another area dominating much of the industry. ISLA continues to invest in digital best practices and is coordinating with global associations to ensure the collateral management space is fully addressed. One of the biggest goals is harmonising standards across jurisdictions, with support for a Common Domain Model (CDM).
The panel noted that openness from regulators, particularly an 鈥渙pen door policy鈥� the association has for discussions with the UK鈥檚 Financial Conduct Authority (FCA), provides an opportunity to influence frameworks at an early stage.
A recently developed digital assets annex, meanwhile, one speaker jokingly suggested, was described by one stakeholder as 鈥渁 gift from heaven鈥� 鈥� a reflection of the strong appetite for practical tools that can bridge emerging technology and operational requirements.
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