Monoline Initiatives

ISDA members have gathered in recent weeks to discuss what current financial market uncertainty means for the monoline insurers.

ISDA is engaged in a number of initiatives in respect of the monoline insurance entities. At the request of its membership the Association is hosting a list of monoline obligations. ISDA has also published a CDS Monoline Supplement Agreement that enables parties to ensure that all their trades are consistently documented to the market standard, regardless of whether they were documented under the ISDA 2003 Monoline Provisions or the 2005 ISDA Monoline Supplement.

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ISDA Submission on UCITS

ISDA has submitted a letter to the European Committee of Securities Regulators (CESR) and the European Commission on UCITS funds and credit derivatives.

On March 3, ISDA submitted a letter to the European Committee of Securities Regulators (CESR) and the European Commission seeking clarity as to the ability of UCITS funds to enter into credit derivatives following enactment into national laws of the Eligible Assets Directive (EAD), due by late March 2008. The concern raised by members is that the EAD arguably has the result that following implementation of the EAD, UCITS funds will not be permitted to enter into CDS transactions, whether physically or cash settled, that provide for the delivery of loans or for potential cash settlement by reference to loans that are not eligible assets.

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