The International Swaps and Derivatives Association has today published two reports designed to improve understanding of how collateral is used to mitigate credit risk in the over the counter derivative markets.
The Market Review of OTC Bilateral
Collateralization Practices and the Isda Independent
Amount Whitepaper were both developed by the Isda
Collateral Steering Committee. The Managed Funds Association
(MFA) and Securities Industry and Financial Markets Association
(Sifma) both helped with the white paper.
Isda hopes the documents will shed light on how the OTC
markets work, at a time when regulatory reforms are being
prepared in the US, Europe and Asia.
OTC markets’ perceived opacity and
susceptibility to systemic risk have been widely attacked since
the financial crisis and even blamed for causing it. A strong
current of regulatory and political opinion wants to push more
OTC derivatives into centrally cleared or exchange-traded
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |