Tag: Isda

Isda

ISDA Publishes Benchmark Fallback Paper

The International Swaps and Derivatives Association (ISDA) has published a report that summarises responses to a consultation on pre-cessation issues for Libor and certain other interbank offered rates (Ibors). The consultation took place between May and July, and sought comment on how derivatives contracts should address a regulatory announcement that Libor or certain other Ibors categorised as critical benchmarks […]

ISDA Publishes Final Consultation on Benchmark Fallbacks

The International Swaps and Derivatives Association (ISDA) has launched a new consultation to finalise the methodologies for the adjustments that will be made to derivatives fallbacks in the event certain interbank offered rates (Ibors) are permanently discontinued. The latest publication follows two earlier consultations, which set out options for the adjustments that will apply to […]

ISDA to Create Custody Function for IM

The International Swaps and Derivatives Association (ISDA) and Linklaters have announced the addition of a new custody function on ISDA Create’s initial margin (IM) offering, which will enable users to complete all documentation required for regulatory IM on a single platform. BNY Mellon will be the first custodian to go live on the platform. ISDA […]

Bloomberg Selected as Benchmark Fallback Vendor

The International Swaps and Derivatives Association (ISDA) has announced that Bloomberg Index Services Limited (BISL) has been selected to calculate and publish adjustments related to fallbacks that ISDA intends to implement for certain interest rate benchmarks in its 2006 ISDA Definitions. Bloomberg was chosen following an in-depth selection process, which began with a public invitation to […]

ISDA Publishes Preliminary Results of Benchmark Fallback Consultation

The International Swaps and Derivatives Association (ISDA) has published a statement summarising the preliminary results of its supplemental consultation on adjustments that would apply to fallback rates in the event certain interbank offered rates (Ibors) are permanently discontinued. The consultation was launched in May, and set out options for spread and term adjustments if fallbacks are triggered […]

Regulators Target Manufactured Credit Events

A joint statement from US and UK regulators signals a continued scrutiny on so-called “manufactured credit events” in the credit derivatives market. The statement, from US Commodity Futures Trading Commission (CFTC) chair Christopher Giancarlo, US Securities and Exchange Commission (SEC) chair Jay Clayton, and UK Financial Conduct Authority (FCA) chief executive Andrew Bailey says, “The […]

ISDA Survey Highlights Close Out Netting as Crucial Factor in Derivatives Growth

Trading volumes in Asia’s derivatives markets are expected to increase, but achieving certainty on close-out netting is identified as an important factor in driving further development of local markets, according to a new survey of derivatives market participants active in Asia-Pacific, published by ISDA to coincide with the start of its Annual General Meeting (AGM) in Hong Kong.
Nearly three quarters of survey respondents expect the proportion of foreign exchange derivatives trading executed in Asia ex-Japan to increase over the next three to five years, while 63% predict an increase in the share of interest rate derivatives traded in the region

ISDA Releases Best Practice for CCPs in Wake of Nasdaq Default

The International Swaps and Derivatives Association (ISDA) has published a set of best practices for central counterparties (CCPs), aimed at ensuring greater consistency in risk practices at CCPs across the globe.
The recommendations follow a default at Nasdaq Clearing last September, which exceeded the defaulting member’s margin and default fund contribution and required the use of mutualised resources – the second such event in five years.
The paper highlights steps that can be taken to minimise the potential for a member default to impact other members and the financial system as a whole, except in an extreme stress event.

ISDA Confirms Benchmark Fallback Results

The International Swaps and Derivatives Association (ISDA) has published a report summarising the final results of a consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (IBORs).
The report, Anonymized Narrative Summary of Responses to the ISDA Consultation on Term Fixings and Spread Adjustment Methodologies, was prepared for ISDA by The Brattle Group and confirms the preliminary findings published by ISDA at the end of November. The consultation, which was launched in July, covered the proposed methodologies for certain adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued.

ISDA Publishes Responses to Benchmark Consultation

The International Swaps and Derivatives Association, (ISDA) has published a statement summarising the preliminary results of a consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (Ibors).
The consultation, which was launched in July, covered the proposed methodologies for certain adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued. ISDA says it received 152 responses from 164 entities to the consultation from a variety of market participants.