ISDA®
INTERNATIONAL
SWAPS AND DERIVATIVES ASSOCIATION, INC.
NEWS RELEASE
For
Immediate Release, Thursday, January 29, 2009
For
More Information, Please Contact:
Cesaltine
Gregorio, ISDA New York, +1 212-901-6019, cgregorio@isda.org
Donna
Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
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."
About
ISDA
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.
®ISDA is a
registered trademark of the International Swaps and Derivatives Association,
Inc.