INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.
For Immediate Release, Thursday, January 29, 2009
For More Information, Please Contact:
Cesaltine Gregorio, ISDA New York, +1 212-901-6019, firstname.lastname@example.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, email@example.com
ISDA Announces Agreement to Make J.P. Morgan’s CDS Analytical Engine Available as Open Source; Increases Transparency in CDS Pricing
NEW YORK, Thursday, January 29, 2009 - The International Swaps and Derivatives Association, Inc. (ISDA) today announced that J.P. Morgan has transferred to ISDA its CDS Analytical Engine. The CDS analytical engine, originally developed by the Quantitative Research group at J.P. Morgan, is widely used in the industry to price CDS contracts. ISDA will make the analytical engine available as open source code, thereby increasing transparency around CDS pricing.
"J.P. Morgan has invested a lot of intellectual capital in this analytical engine. Its willingness to assign this to ISDA for us to make it available as open source to the entire industry demonstrates our collective commitment to the integrity of the CDS product," said Robert Pickel, Executive Director and Chief Executive Officer, ISDA. "ISDA and its members are vigilant to public concerns around transparency. This is yet another measure of increased standardization in CDS."
ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has over 800 member institutions from 56 countries on six continents. These members include most of the world’s major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.