By Davide Scigliuzzo and Christopher WhittallPublished August 21, 2014 Reuters
The International Swaps and Derivatives Association (ISDA) has set an action date of September 3 to settle Argentina's credit default swaps after including two controversial yen-denominated bonds in the list of deliverable securities.
In a 14-to-1 vote, members of ISDA's determinations committee decided Thursday to allow the yen bonds to be delivered in the auction that will determine the payout for the US$813m net notional of CDS, rejecting a challenge that they should be left out.
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By Mike KentzPublished August 21, 2014 IFR
The ISDA 2014 Credit Derivatives Definitions Protocol will help participants to close the legal gap between existing transactions and new ones, which will be governed by a new set of legal standards for CDS that are scheduled to launch on September 22.
The 2014 Credit Definitions are aimed at addressing flaws in the old legal documentation for CDS contracts that were exposed during the sovereign debt restructuring in Greece and the introduction of bank bail-in debt.
By Michelle PricePublished August 21, 2014 Reuters
The international banking industry has asked regulators for more time to implement derivatives rules that could add $800 billion to the global financial industry's cost of doing business, people familiar with the matter said.
The International Swaps and Derivatives Association (ISDA), which represents the over-the-counter derivatives market, has written to the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO), the global regulatory banking and securities bodies, requesting a delay to rules that aim to make trading derivatives safer, the people added.
By Beth ShahPublished August 18, 2014 Global Capital
ISDA reported that there was a 31% decrease in the notional cleared for CDS and 32% less executed on swap execution facilities, compared with the previous week. Rates saw an increase, with 11% more volume cleared, and 14% more executed on SEFs last week.
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By Hazel SheffieldPublished August 14, 2014 Global Capital
The International Swaps and Derivatives Association has clarified the meaning of appropriate protection for netted capital under the Bank Recovery and Resolution Directive in response to queries by government officials in the European Union.
"The BRRD talks about a member state ensuring 'appropriate protection' but does not say what this means. The industry wants to be sure that the safeguards that the BRRD says should be implemented are in fact implemented effectively," Edward Murray, consultant at Allen & Overy
Published August 12, 2014 FOW
The International Swaps and Derivatives Association (ISDA) has published a report arguing that the amount of speculation in the over-the-counter (OTC) derivatives market is commonly misrepresented.
It makes the case that 65% of turnover activity is conducted as dealer-to-client and that "These participants, comprising non-dealer financial institutions and non-financial customers, use derivatives primarily to hedge risks and reduce volatility on their...
By Beth ShahPublished August 11, 2014 Global Capital
Derivatives volumes pertaining to trades between reporting dealers is critical for market liquidity and the facilitation of client trades as it allows end users to put on risk-reducing and cost-effective hedges, according to a research study from the International Swaps and Derivatives Association.
According to the publicly available data published by the Bank of International Settlements, 35% of over-the-counter interest rate derivatives market turnover relates to dealer market-making and the hedging of customer transactions.
By Ben EdwardsPublished August 6, 2014 Wall Street Journal
A panel of the International Swaps and Derivatives Association Wednesday ruled that the Portuguese central bank's decision to break up Banco Espírito Santo BES.LB -40.30%won't trigger a payout on insurance-like contracts linked to the stricken lender's debt.
ISDA was asked late Monday to rule whether the Portuguese Central Bank's decision to split BES into two would qualify as a so-called bankruptcy credit event, meaning that any contracts on BES debt—known as credit default swaps—would be activated.
By Tom OsbornPublished August 5, 2014 Risk
The first shots were fired yesterday in what promises to be a tense battle over the definition of liquidity in Europe's over-the-counter derivatives market. Only swaps that trade multiple times a day should be considered liquid, according to the International Swaps and Derivatives Association - regulators have implied even instruments that trade only once every other day might count.
The debate is important because liquidity plays a crucial role in the Markets in Financial Instruments Directive and its accompanying regulation (Mifid II and Mifir). Swaps deemed liquid will be forced onto one of three different categories of trading platform, and subjected to pre- and post-trade transparency requirements.
By Christopher WhittallPublished August 5, 2014 IFR
The ISDA Determinations Committee has been asked a second question with regard to the fate of the US$900m of net notional CDS referencing embattled Portuguese lender Banco Espirito Santo.
The new general interest question, which appeared on the ISDA website late on Monday and will be ruled upon on Wednesday in a session starting at 12pm London time, asks whether a bankruptcy credit event has occurred with respect to BES.
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