ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

NEWS RELEASE
For Immediate Release Tuesday, February 5, 2008

For More Information, Please Contact:

Scott Marra, ISDA New York, 212-901-6013, smarra@isda.org

Carmen Neumann, ISDA London, +44 203 088 3554; cneumann@isda.org

 

ISDA PUBLISHES EUROPEAN VARIANCE SWAP PROTOCOL 

 

NEW YORK, Tuesday, February 5, 2008 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced publication of its European Variance Swap Protocol. The protocol will standardize treatment of variance swaps across the industry and will provide a unified approach to what constitutes a market disruption event.

 

The Variance Protocol facilitates a single standard for European variance swaps transacted on two existing agreements (the Interdealer European Variance Swap Master Confirmation Agreement, developed in 2005, and the 2007 ISDA European Variance Swap Master Confirmation Agreement ) under the terms of a third, revised agreement.

 

Adhering to the Variance Protocol will effect amendments to transactions under these two master confirmation agreements and upgrade them to new documentation standards under the third, the Revised 2007 ISDA European Variance Swap Master Confirmation Agreement.

 

The protocol promotes efficiency and consistency of treatment across the European variance swap business and enhances operational efficiency for European variance swaps transacted by dealers and other counterparties not solely in the interdealer market,” said Robert Pickel, Executive Director and Chief Executive Officer, ISDA.  

 

The Protocol is open to ISDA members and non-members alike. The adherence period runs from February 5 to February 29, 2008. The text of the Protocol and form of adherence letter, guidance on the mechanics of the Protocol, answers to frequently asked questions and details on adherents, are available at www.isda.org.

 

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 approximately 815 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 & Derivatives Association, Inc.