ISDA

ISDA's Julian Day, Head of Market Infrastructure, discusses the top operational priorities for 2012 and explains how ISDA aims to help market participants address concerns regarding central clearing of OTC derivatives, implement the new standardised CSAs and the 2011 equity derivatives definitions.

Q. What will be the main focus for ISDA in 2012 from an operational point of view?

Michael Beaton of Document Risk Solutions explains the Standard Credit Support Annex (SCSA), which is not mandatory for counterparts to derivatives transactions, but is likely to significantly impact the future shape of the derivatives industry.

Two recent cases before the High Court have returned to the question first raised in Marine Trade S.A. v Pioneer Freight Futures Co Ltd as to whether or not a non-Defaulting Party to an ISDA Master Agreement is entitled to withhold payment to a Defaulting Party pursuant to Section 2(a)(iii) whilst simultaneously enforcing the Defaulting Party’s payment obligation in full.

Twenty years ago when confirmations for OTC products were produced using Word for Windows 2.0 and sent by FAX for manual review, identifying the legal entity was a hit and miss affair.

The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Americas Credit Derivatives Determinations Committee resolved that a Bankruptcy Credit Event occurred in respect of Eastman Kodak Company. 

The Committee determined that an auction will be held in respect of outstanding CDS transactions. ISDA will publish further information regarding the auction on its website, www.isda.org/credit, in due course.

The International Swaps and Derivatives Association, Inc. (ISDA) announced today the membership and charter of the Industry Clearing Committee (ICC).

The ICC, which consists of a broad cross-section of over-the-counter (OTC) derivatives industry market participants, was formed by ISDA in June 2011 to meet current and emerging industry needs in respect of clearing. More specifically, the ICC will assist in coordinating industry efforts to reach optimal levels of central counterparty clearing and to address obstacles in achieving those levels.

The International Swaps and Derivatives Association, Inc. (ISDA) published today its draft taxonomies for credit, interest rate, commodity, foreign exchange (FX) and equity derivatives. These taxonomies are currently open for a 30-day comment period.

The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved that a Restructuring Credit Event occurred in respect of North Rock Asset Management Plc. 

The Committee determined that an auction will be held in respect of outstanding CDS transactions. ISDA will publish further information regarding the potential auction on its website, www.isda.org/credit, in due course.

Analyzing the Impact of European Sovereigns’ Collateral Policies

The Association for Financial Markets in Europe (AFME), the International Capital Market Association (ICMA) and the International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a paper titled The Impact of Derivative Collateral Policies of European Sovereigns and Resulting Basel III Capital Issues.