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Isda publishes reports to explain OTC risk protections

11 March 2010

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.

Read more: [Isda] [International Swaps and Derivatives Association] [over the counter] [OTC] [derivatives] [collateral] [Julian Day] [collateralisation] [bilateral]

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...


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