On August 29, the Futures Industry Association (FIA) and ISDA announced publication of the FIA-ISDA Cleared Derivatives Addendum, a template that can be used by U.S. futures commission merchants (FCMs) and their customers to document their relationship with respect to cleared OTC swaps. The Addendum supplements a futures and options agreement between a U.S. FCM and its customer, includes party representations as to certain clearing-related matters, close-out methodologies for cleared OTC swaps, triggers for liquidation, valuation provisions for terminated trades, and provisions governing tax issues. ISDA Release. FIA Release.
On July 11, ISDA announced the publication of the 2011 ISDA Equity Derivatives Definitions in an effort to increase standardization and automation and further reduce risk across over-the-counter derivatives markets. ISDA Release.
On May 23, ISDA published a discussion paper on the purposes, function and issues associated with central clearing of over-the-counter (OTC) derivatives. ISDA Release.
On April 5, ISDA announced a market practice statement on short sale price limitations triggered under Regulation SHO Rule 201 for U.S. share and index variance swaps. ISDA Statement.
On March 25, ISDA issued a request for proposals to establish a Commodity OTC Derivatives Trade Repository that would: (i) meet all current and future regulations governing repositories and (ii) provide a structure to rapidly report and provide timely access to information to applicable regulators. Proposals from interested providers must be submitted by April 25. ISDA Release.
On December 21, ISDA announced that it sought and was granted permission to intervene in the Lehman Brothers International Europe case in order to ensure that the arguments reflecting the market’s interpretation of Section 2(a)(iii) of the ISDA Master Agreement were made before the court. The court agreed with ISDA that Section 2(a)(iii) is “suspensive” in effect. ISDA Release.
On January 3, ISDA published the Asia Pacific Portfolio Reconciliation Memorandum of Understanding outlining the process and frequency for reconciling portfolios of collateralized derivatives transactions used by participating firms in that region. ISDA Release.
On December 8, ISDA published two studies on transparency in the OTC derivatives industry with respect to credit default swaps and interest rates swaps. The studies highlight the spectrum of methods that can be used to increase transparency while analyzing the benefits and costs of doing so. ISDA Release.
On October 26, ISDA published two best practice documents: the OTC Derivatives Settlements Best Practice and the OTC Derivatives Interest Compensation Claims Best Practice. ISDA Release.
On August 25, ISDA published ‘Additional Provisions for Consent to, Confirmation of, Transfer by Novation of OTC Derivative Transactions’. The provisions amend the novation protocol and provide for further streamlining of the process for novating or assigning credit derivative trades as part of ISDA’s ‘Credit Consent Equals Confirmation Project’. The project goes live on September 30. ISDA Release.