ISDA®
INTERNATIONAL
SWAPS AND DERIVATIVES ASSOCIATION
NEWS
RELEASE
For Immediate Release
Wednesday, June 18, 2003
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The Collateral Asset Definitions are structured as a series of tables covering the most commonly used assets in more than twenty jurisdictions. The Definitions are designed for incorporation into any form of collateral agreement, including both ISDA Credit Support documentation and non-ISDA forms of collateral agreement. ISDA anticipates publishing future editions of the ISDA Collateral Asset Definitions, updated to reflect changes in the published definitions and to include additional assets.
“ISDA recognizes the significant efforts of collateral practitioners from around the world to advance market practice and to simplify collateral documentation through the use of more succinct, standardized asset definitions,” said Robert G. Pickel, Executive Director and Chief Executive Officer of ISDA. “As the amount of collateral in circulation in the derivatives markets grew beyond a half trillion dollars, collateral practitioners committed to address counterparty credit exposure risk management concerns. ISDA developed the Definitions to assist the smooth and efficient functioning of collateral arrangements in the derivatives markets and to increase certainty in their interpretation.”
Collateral use in privately negotiated derivatives transactions and related margined activities, as reported in the ISDA 2003 Margin Survey, exceeds $719 billion, a 70 percent increase over the amount reported in the 2002 Survey.
The ISDA Collateral Asset
Definitions are available online from ISDA at www.isda.org/c_and_a/collateral.html.
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.
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