ISDA's Subscriber Membership category is designed for corporations, financial institutions and government entities and others who use privately negotiated derivatives to better manage financial risks. Subscriber Membership provides a forum for these industry participants to stay abreast of and contribute to important developments and initiatives.
For the purpose of assessing dues, Subscriber Members fall into five sub-categories. Please note that the distinction is made solely for dues assessment and does not affect a Subscriber Member's privileges.
The first sub-category is Financial Company. This sub-category is for a corporation, partnership, government agency or other entity, which is not eligible as either a Primary Member or Associate Member, the principal business or businesses of which are primarily financial in nature (a “non-dealer financial firm”) and which is not an Investment and Trading Firm or a Regulated Bank. These firms or the principal activities in which they engage are typically subject to regulation by banking, securities or insurance regulators, and a substantial number of their clients or customers may not be sophisticated investors.
The second is Regulated Bank. This sub-category is for a non-dealer financial firm that is regulated as a bank by one or more banking regulators and that is subject to rules on regulatory capital similar to those developed by the Basel Committee on Banking Supervision pursuant to adoption or implementation of those rules at national level. (The membership provides them with access to ISDA’s legal opinions, a key credit-risk reduction tool.)
The third is Global Investment Trading Firm. This sub-category represents investment and trading firms with $10 billion or more in assets under management, and very large asset management firms.
The fourth is Investment and Trading Firm. This sub-category is for a non-dealer financial firm the derivatives-related activity of which is in connection with investing and trading for the firm’s own account or for the account of clients of the firm who are sophisticated investors. These firms or the funds that they manage may be, but are typically not, subject to regulation by banking, securities or insurance regulators.
The fifth, Subscriber, is for all other derivatives end-users.
First-year dues for Subscriber Members are prorated to reflect the timing of their entry into the Association. The membership runs on the calendar year.