As the International Swaps and Derivatives Association (ISDA) celebrates its 40th anniversary, the organization stands at a pivotal moment—reflecting on a legacy of leadership in the global derivatives markets while preparing for a rapidly evolving future. At the forefront of this transition is Jeroen Krens, the newly appointed Chair of ISDA’s Board.
In a latest episode of The Swap, the association’s official podcast hosted by Nick Sawyer, ISDA’s Global Head of Communications & Strategy, Krens spoke with Scott O’Malia, CEO of ISDA, about his vision for the future, his strategic priorities, and the key issues he believes will define the next chapter for the organization and the markets it serves.
In his day job, Krens serves as the Managing Director and Chief Operating Officer of the Markets and Securities Services division at HSBC. He has held two separate terms on the ISDA board—his current tenure began in November 2016, and he previously served from January 2012 to February 2014 while at the Royal Bank of Scotland.
For Krens, who brings over a decade of board experience, ISDA’s core mission remains unchanged. “There’s a lot of continuity. One thing that’s definitely not going to change is this commitment to safe, efficient markets,” he told O’Malia. “That’s what we’re grounded in, and that’s kind of been the beacon that’s allowed us to be as successful as we have been today.”
While ISDA’s foundational values endure, Krens is clear-eyed about the shifting external landscape. “The environment is changing,” he said. “We’ll adopt the same approach to the outside world and to our members, but our responses will evolve.”
One of the major themes Krens discussed was the evolving regulatory environment, particularly around Basel III and U.S. capital rules. “The Basel situation has evolved substantially over the last couple of months, and we’ll need to respond to that,” he explained.
He emphasized that ISDA has consistently advocated for well-calibrated, risk-sensitive regulatory frameworks. “Some of the aspects of the proposed implementation in the U.S. are problematic,” he said, highlighting concerns around proposals that could discourage market participants from engaging in central clearing—a cornerstone of post-crisis financial reform.
On internal models, Krens referenced a survey that found only 10 of 26 banks were meaningfully adopting them. “That tells you something,” he said. “It might be too hard to implement or firms risk getting knocked out of the regime, leading to a less risk-sensitive approach overall.”
Krens also addressed the SEC’s one-year delay of mandatory clearing for the U.S. Treasury market, a move ISDA supported alongside other trade associations. “This extension was never about avoiding reforms,” he told O’Malia. “It was to ensure proper time to prepare for this important step in the critical U.S. Treasury market.”
He stressed the operational, legal, and capital implications of the new rules. “We must make sure clearing doesn’t create unintended consequences for dealers and banks that are balance-sheet sensitive. Capital rules need to reflect the interconnectedness of Treasury repo and cash clearing with proper recognition of cross-product netting.”
On the Supplemental Leverage Ratio (SLR), Krens welcomed recent comments by Federal Reserve Chair Jerome Powell about reconsidering exclusions for U.S. Treasuries. “It’s a very high-profile topic,” he said. “Directionally, the SLR disincentivizes people from a relatively safe business like U.S. Treasury market making.”
Krens highlighted the importance of ISDA’s digital agenda, a focus that predates his role as Chair. “Before I became Chair, I had the honor of chairing the committee that oversees these developments,” he said. “This is not new—we’re building on years of work.”
He pointed to major initiatives like ISDA’s Digital Regulatory Reporting (DRR), ISDA Create, and the upcoming Notices Hub, a service launching in June designed to streamline and digitize the exchange of critical risk management notices.
“These tools reduce operational risk and increase clarity,” Krens explained. “We’ve had a strong response from members. As the network grows, it will generate even more efficiency.”
Under Krens’ leadership, ISDA will continue its longstanding work with emerging markets. “We’ve been hugely successful in developing netting legislation in many countries,” he said, citing Saudi Arabia as the most recent example—completing coverage across all G20 jurisdictions.
He also noted that enforceability of netting is just one step in broader market development. “We’ve published white papers on building robust regulatory frameworks in emerging economies. That’s something we’re exploring further.”
As part of its 40th anniversary, ISDA will publish a new report analyzing the role of derivatives in supporting risk mitigation, investment, and market liquidity. “This report asks a fundamental question—what’s the value of all this?” Krens said. “Derivatives are a fantastic tool for transferring risk when implemented properly.”
The report, based on a survey of over 1,000 companies, found that 87.1% use OTC derivatives—many of them household names. It will be launched in Amsterdam at ISDA’s Annual General Meeting in May.
“Forty years is quite an achievement,” Krens said. “It’s a chance to reflect on what’s been built—and to remind ourselves why we do this.”
Krens’ path into the world of derivatives began serendipitously during a stint in Milan, where a canceled IT project left him without a job—until a trader asked, “Do you understand derivatives?”
“I probably overstated how much I understood,” he laughed. From there, he moved on to run swap books in Chicago, take on senior roles in Tokyo, and work on both the buy and sell sides of the market.
Looking back, Krens cites the rollout of margin rules for uncleared derivatives and the LIBOR transition as two personal highlights. “They were both large-scale, complex efforts with constructive collaboration across the industry,” he said.
Outside of work, Krens lives in the English countryside in an old farmhouse that “always has something breaking or needing to be chopped.” He’s an avid “old man’s” field hockey player, recently completed his first marathon, and enjoys time with his wife and four grown children—none of whom, he notes, followed him into derivatives.
And yes, he remains a Cubs fan from his days in Chicago. “This was when the Cubs never won anything,” he told O’Malia. “The day job was interesting enough—you’d just go sit in the sun, the Cubs would lose, and it was a great place to be.”
