For Immediate Release Thursday, June 10, 2004
For More Information Contact: Louise Marshall, (212) 901-6000; lmarshall@isda.org
Credit
Derivatives Processing Improving
The 2004 Survey reports
that 88 percent of credit derivative confirmations are now sent out in the T+5 target
time versus 83 percent in the previous year. Trade data for approximately 96
percent of FRA and vanilla swap trades were reaching the back office on Trade
Date during calendar year 2003. All trade data reach the back office by the
following day, with the exception of credit derivatives, where 98 percent of
trade data is received by the back office on T+1. The proportion of credit
derivatives trade data received by the back office within 1 hour grew from 8
percent over 2002 to 24 percent over 2003. Responses also show that credit
derivatives strongly lead expectations of future volume growth, with an
anticipated 51 percent growth expected over 2004.
“There is a keen focus by
the industry on improving credit derivatives processing time, consistent with
the endeavors of ISDA’s Operations Strategy
initiative launched in late 2003,” said Robert Pickel, ISDA’s
Executive Director and Chief Executive Officer.
“While these products have lagged other privately negotiated derivatives
markets in terms of processing efficiency, ISDA members have demonstrated
impressive efforts to improve their operational performance.”
ISDA’s annual Operations Benchmarking Survey, initiated in
2000, identifies and tracks operations processing trends in the privately
negotiated derivatives industry. The results provide individual firms with a
benchmark against which to measure the promptness and accuracy of their trade
data capture, confirmation procedures, and settlement. As in past years,
individual respondents receive a feedback report that compares their data with
those of respondents of similar size and with those of the entire respondent
population. The entire survey can be
accessed in the Latest News section of ISDA’s web
site at www.isda.org.
ISDA is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 600 member institutions from 46 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