ISDA
CDS Settlement Mechanism
In an effort to facilitate settlement of credit derivative trades, ISDA and its members have been discussing the incorporation of ISDA’s off-the-shelf credit derivative settlement auction mechanism into ISDA documentation and ISDA has activated a process towards achieving that incorporation where appropriate. This process has been commonly referred to as ‘hardwiring’ into the ISDA documentation. ISDA has committed to review with supervisors in May 2008 the industry’s status on this matter and a timetable for next steps in the effort.
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OMG
Submits Letter to NY Federal Reserve
On 27 March 2008, the Operations Management Group (OMG)
submitted to the Federal Reserve Bank of New York its latest
set of goals for strengthening operational efficiency across
privately negotiated credit and equity derivatives products.
The OMG is a group of senior derivatives operations professionals
from dealer and buy-side firms with representation from
three trade associations including ISDA. The group is tasked
with examining and effecting fundamental change in current
front-to-back processes for all OTC derivative products.
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