Market Practice

Bank for International Settlements

After an increase of only 3% in the second half of 2010, total notional amounts outstanding of over-the-counter (OTC) derivatives rose by 18% in the first half of 2011, reaching $708 trillion by the end of June 2011. Notional amounts outstanding of credit default swaps (CDS) grew by 8%, while outstanding equity-linked contracts went up by 21%.

New reform prompts market practice update for tri-party reverse repurchase agreement settlement and confirmation

The International Swaps and Derivatives Association, Inc. (ISDA) announces market practice changes to the trading convention for credit default swaps (CDS) in Japan and Asia ex-Japan that take effect today. These changes include the adoption of standard coupons and full first coupons in CDS transactions.

“These changes are a product of industry-wide dialogue and coordinated efforts among ISDA members to promote standardization, transparency and liquidity in the Asia CDS markets," said Keith Noyes, ISDA Regional Director, Asia Pacific.

Misys plc (FTSE: MSY.L), the global application software and services company, today announces that it is the first to meet the market practice changes that will come into effect throughout Asia on 20 December 2009. Version 5.4 of Misys Summit FT covers all aspects of the market practice changes announced by ISDA. The enhancement was available earlier in the year and has successfully been adopted by credit derivatives customers in the Americas and Europe.