The International Swaps and Derivatives Association (ISDA) has released a paper outlining its suggestions for accelerating the pace of automation in the processing of OTC derivative trades. The paper includes a target timeline for automated trade verification, confirmation and legal execution for FX, interest rate, credit, equity and commodity derivatives by June 2005.
“OTC derivatives have established themselves as a widely recognised tool for financial and risk management in the international marketplace – and there is every indication that the growth of these important tools will continue,” says Robert Pickel, ISDA’s executive director and CEO. “It is therefore imperative that the industry moves towards systems, standards and practices to more quickly and accurately process the growing volume of derivatives transactions. The end result will be to reduce risk and enhance productivity for industry participants.”